ZEAL Confirms Preliminary Business Figures for 2022 and Presents Sustainability Strategy

March 26, 2023 | Financial
  • ZEAL confirms business growth in 2022
  • Outlook 2023: Sustained business growth expected
  • ZEAL presents comprehensive sustainability strategy

Hamburg, 23 March 2023. ZEAL Network SE, the leading German online provider of lottery products, today published its annual report for 2022, confirming the preliminary financial figures already communicated on February 27.

Strong development despite global uncertainties
In 2022, ZEAL took advantage of the improved jackpot situation for targeted new customer acquisition and increased its growth by 29 percent year-on-year to 703 thousand registered new customers (2021: 544 thousand). The CPL (cost per lead) of 35.97 euros was higher than in the previous year (2021: 27.94 euros). The ratio of active customers per month (MAU: Monthly Average Active Users) increased by eleven percent to 1,070 thousand in fiscal 2022 (2021: 964 thousand).

Billings increased by 16 percent to 758.4 million euros (2021: 656.5 million euros). The average billings per user per month (ABPU) of 59.09 euros in 2022 was four percent higher than in the previous year (2021: 56.77 euros). Due to a higher-margin product mix, ZEAL’s revenue grew by 21 percent to EUR 105.2 million (2021: EUR 86.8 million[1]) and the company’s gross margin exceeded the previous year’s level of 12.9 percent by 0.7 percentage points (2021: 12.2 percent). Due to the expansion of business volume, ZEAL was able to increase EBITDA by 3.9 million euros. The company’s market share also increased to 41 percent compared to 2021 (39 percent).

Comprehensive sustainability strategy launched
In the past fiscal year, ZEAL invested in the comprehensive expansion of its sustainability strategy. To this end, the company primarily compiled and evaluated relevant ESG data and installed a comprehensive risk management system. In addition, ZEAL identified six areas that are relevant for the further expansion of its ESG strategy: The company’s attractiveness as an employer, ethical behavior and sustainable business practices, player and youth protection, environmental protection, data responsibility and sustainable and safe technology. At the same time, ZEAL is committed to supporting the agreement to combat climate change adopted at the UN Climate Change Conference in Paris in December 2015. Corresponding targets and key figures will be announced before the end of the current fiscal year 2023.

Outlook 2023
In fiscal year 2023, ZEAL plans to further expand its market leadership as an online provider of lottery products and to introduce new products, including “online games” under the license for virtual slot machines already applied for by the Company. Depending on the general conditions, ZEAL expects a billings volume in the range of EUR 800 million to EUR 830 million for the Germany segment, assuming an average jackpot development. In addition, ZEAL expects revenues in fiscal year 2023 to be in a range of EUR 110 million to EUR 120 million. The company expects EBITDA to be in a range of EUR 30 million to EUR 35 million. ZEAL again plans to invest significantly more in new customer acquisition than in the previous year and expects marketing expenses of between EUR 34 million and EUR 39 million.

“We are pleased to confirm our financial results for 2022 and proud of our strong performance despite the ongoing global uncertainty,” says Jonas Mattsson, Chief Financial Officer of ZEAL Network SE. “In addition, we look forward to making a valuable yet necessary contribution to the fight against climate change and the preservation of our environment by further expanding our sustainability strategy.”

About ZEAL: 
ZEAL Network SE is the leading German provider of lotteries on the internet. Through the portals LOTTO24 and Tipp24 of the subsidiary LOTTO24, the company brokers customers’ tickets to the state lottery companies and to charity lottery operators. The product range includes LOTTO 6aus49, Spiel 77, Super 6, Eurojackpot, GlücksSpirale, lottery clubs, Keno, the Deutsche Fernsehlotterie, Scratch Games, the Deutsche Traumhauslotterie and freiheit+. Founded in Germany in 1999, ZEAL started out as a German lottery broker under the name Tipp24. In 2005, the company went public on the Frankfurt Stock Exchange (Prime Standard) as one of the most successful IPOs in Germany at the time. In 2019, ZEAL took over LOTTO24 AG.


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