ZEAL Network and its subsidiary Lotto24 report better than expected figures for the year to date and raise the forecast for 2020. On a group basis, ZEAL is now expecting new customers of 0.9 million instead of the previous 0.8 million. At 80 million euros to 83 million euros, sales are expected to be 4 million euros higher than previously expected. In the Germany segment, the company intends to continue to generate a gross margin of 12 percent and expects an EBITDA of between EUR 8 million and EUR 10 million after EUR 7 million to EUR 10 million so far. However, this is dependent “on the general conditions – in particular the continuation of the high marketing investments to acquire new customers in the context of the attractive market environment, the jackpot development and the implementation of the synergy effects,” said ZEAL Network on Thursday.
In the course of the year to date, the lottery group has posted a drop in sales from 93.2 million euros to 63.9 million euros, which is not surprising. “Just like the transaction volume, the sales in the first nine months of 2019 still included the secondary lottery business, but not the online lottery brokerage business of Lotto24 until May 14, 2019,” said ZEAL Network. On an EBITDA basis, the group posted a decline in profits from EUR 28.3 million to EUR 6.9 million for this reason. The already raised annual forecast for registered new customers was already achieved after the first nine months of 2020, according to the company.
At a glance – chart and news: ZEAL Network