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ZEAL is Lowering the Forecast for Transaction Volume and Sales in 3Q 2021 but is Increasing the Forecast for EBITDA Due to Cost Savings

November 13, 2021 | Financial

HAMBURG, Germany (November 3, 2021) — According to preliminary calculations, ZEAL Network SE ( lotto24.de , tipp24 .de), the leading German online provider of lottery products, did not achieve the annual forecast for the key figures transaction volume and revenue published in March 2021 due to the comparatively weak jackpot development of the lotteries LOTTO 6aus49 and Eurojackpot in the third quarter of 2021.

Thanks to the consistent cost management and the marketing expenses adapted to the jackpot environment, the company continues to expect a significantly improved profitability compared to the previous year. As soon as the jackpot development improves, the company plans to increase its marketing spend again.

According to preliminary calculations, the transaction volume in the Germany segment rose by around 5 percent to EUR 493.2 million in the first nine months of 2021 (2020: EUR 471.8 million). The ZEAL Group’s preliminary sales of EUR 65.1 million were around 1 percent higher than the previous year (2020: EUR 64.5 million). Adjusted EBITDA improved provisionally to around EUR 17.6 million in the first nine months of 2021 (2020: EUR 6.9 million).

Depending on the general conditions – in particular the further development of the jackpot – the company now expects a transaction volume of around EUR 650 million in the Germany segment for the 2021 financial year (previously: at least EUR 700 million). In addition, the company is now assuming that sales will be around EUR 86 million (previously: at least EUR 95 million). For the adjusted EBITDA, ZEAL now expects around 25 million euros (previously: at least 20 million euros).

ZEAL is sticking to the published dividend policy and the goal of proposing a dividend of EUR 1.00 per share to the shareholders at the Annual General Meeting in 2022.

The quarterly statement as of September 30, 2021 will be published on November 11, 2021.

Explanations of the key financial figures used can be found in the 2020 annual report on the company’s website¬†HERE.

SOURCE: ZEAL Network SE.

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