REG-ZEAL Network SE ZEAL delivers strong third quarter performance

ZEAL Network SEAnnouncement

01/11/2018 07:05

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   ZEAL Network SE (-)
   ZEAL delivers strong third quarter performance

   01-Nov-2018 / 08:03 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   1 November 2018

   ZEAL delivers strong third quarter performance

     • Billings growth of 5% to EUR 212.4 million; with an 8% increase vs Q3
       2017
     • Total Operating Performance increased 17% to EUR 114.1 million
     • Significant increase in EBIT to EUR 29.1 million

   ZEAL Group, the world's leading lottery innovator, today announced strong
   results for the first nine months of 2018.

   Billings for the Group grew 5% to EUR 212.4 million year-on-year (2017:
   EUR 201.7 million), and by 8% for the third quarter versus 2017. This was
   driven in the quarter by higher average jackpots in core products compared
   to the previous year, and strong performance in Instant Win Games and US
   lotteries.

   The increased billings, fewer exceptional prize payouts and a focus on
   higher margin products during the quarter resulted in a 17% improvement in
   Total Operating Performance to EUR 114.1 million (2017: EUR 97.6 million).

   With costs flat for the period, the Group delivered a significant uplift
   in Earnings Before Interest and Taxes (EBIT) for the period to EUR 29.1
   million (2017: EUR 12.5 million), with the third quarter's EUR 12.7
   million EBIT outperforming expectations.

   On a normalised basis - which highlights the Group's underlying
   performance - revenues were up 8% and EBIT up 26% year-on-year.

   ZEAL delivered a record number of new registered customers for the Group
   and its partners at a significantly lower cost per acquisition. The
   418,000 acquired represent an uplift of 54% year-on-year (2017: 272,000).
   Average Billings Per User in the lottery betting segment were broadly
   maintained at EUR 56.58 (2017: EUR 57.00).

   Jonas Mattsson, Chief Financial Officer, ZEAL Group said: 'ZEAL has
   delivered a strong set of results for the first 9 months of this year. Our
   record number of new customers, the favourable jackpot environment and
   continued growth in traditionally non-core products have all combined to
   deliver promising topline growth, a good underlying performance, and very
   strong EBIT. These results reflect the continued high demand for our
   products and set us up well for the final quarter of the year.'

   Helmut Becker, Chief Executive Officer, ZEAL Group, said: 'We continue to
   deliver strong profitable growth; focusing firmly on controlling costs
   while also improving customer acquisition and activity. In our core
   business, customer numbers, billings and revenues are all significantly
   up, while our acquisition costs per customer have halved. This is the
   result of the optimisations and investments we have continued to make.
   With positive performance also coming through from our start-ups in Norway
   and the UK, ZEAL is excellently positioned to capitalise on the global
   lottery sector's growth potential.'

   Selected financial results to 30 September 2018:

                      2018              2017
   Billings           EUR 212.4 million EUR 201.7 million
   Revenue            EUR 111.2 million EUR 93.8 million
   TOP                EUR 114.1 million EUR 97.6 million
   EBIT               EUR 29.1 million  EUR 12.5 million
   Earnings per share EUR 2.39          EUR 1.04

    

   2018 Outlook remains unchanged
   For 2018, ZEAL Group expects to deliver EBIT in the range of EUR 33
   million - EUR 43 million, and Total Operating Performance (TOP) of EUR 150
   million - EUR 160 million. ZEAL Group expects to pay a dividend of at
   least EUR 1.00 per share in 2018, subject to financial performance.

   - ENDS -

   Contacts:

   Media Relations:
   Matt Drage, Head of Corporate Communications
   +44 (0) 7976 872 861
    1 matt.drage@zeal-network.co.uk

   Investor Relations:
   Frank Hoffmann, Investor Relations Manager
   +44 (0) 20 3739 7123
    2 frank.hoffmann@zeal-network.co.uk

   Notes to Editor:

    1. ZEAL is an international group of companies reinventing the world of
       lottery.
    2. Specialising in the online lottery space, the company was founded in
       1999 as Tipp24 SE and renamed as ZEAL Network SE in 2014.
    3. The company is based in London, and its shares are listed on the Prime
       Standard of the Frankfurt Stock Exchange.
    4. The Group has more than 3.5 million customers globally. Since its
       incorporation, ZEAL Group has generated stakes of more than EUR 3.6
       billion, paid out more than EUR 1.5 billion in winnings, and has
       helped generate more than EUR 800 million for good causes and the
       State.
    5. ZEAL's Q3 report can be accessed at:
        3 http://www.zeal-network.co.uk/investors/publications/
    6. Total Operating Performance is calculated as the sum of Revenue and
       Other Operating Income as disclosed in the Interim Consolidated Income
       Statement.
    7. ZEAL Group includes all subsidiaries of ZEAL Network SE and the
       affiliated companies of the independent shareholding myLotto24 Ltd.

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   ISIN:          GB00BHD66J44
   Category Code: QRT
   TIDM:          -
   LEI Code:      391200EIRBXU4TUMMQ46
   Sequence No.:  6398
   EQS News ID:   740321


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:matt.drage@zeal-network.co.uk
   2. mailto:frank.hoffman@zeal-network.co.uk
   3. https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=ff31510ef05c26acf2beb9b2365a9c49&application_id=740321&site_id=reuters8&application_name=news


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