Lottery Broker Zeal Networks Needs to Keep Customers Engaged
HAMBURG, Germany (February 27, 2023) – In view of rising acquisition and marketing costs, the lottery broker Zeal Network cannot rule out a decline in operating earnings this year. Sales are expected to increase to 110 to 120 million euros in 2023, as the company surprisingly announced on Monday evening after the stock exchange closed in Hamburg. However, the expenses for the acquisition of new customers and marketing will be at least as high as in the past year, so the operating profit will not be better in every case. Management expects earnings before interest, taxes, depreciation and amortization (Ebitda) to be between 30 and 35 million euros. To attract customers, the management wants to invest 34 to 39 million euros.
According to preliminary figures, Zeal increased its sales by more than a fifth to EUR 105.2 million last year. Of this, 31.7 million euros remained as an operating result and thus 14 per cent more than a year earlier. Here, too, the main reason was the increase in marketing costs, particularly in the second half of the year. They rose by more than 50 per cent to 34.1 million euros and thus accounted for the majority of operating expenses. Zeal plans to present the final figures on March 23.
SOURCE: dpa-AFX 2023.