DGAP-News

ZEAL Network SE: ZEAL continues to grow in the first half of 2021 - Seite 2

Despite this market environment, the Company gained 291 thousand new registered customers in the Germany segment (2020: 593 thousand). The increase in acquisition costs per new registered customer (cost per lead, CPL) of EUR 32.85 (2020: EUR 27.13) was also a consequence of the enhanced marketing strategy, which takes the expected customer quality into account: higher CPLs in low jackpot phases are justified by the fact that it is precisely those lottery players won during these periods who generally exhibit higher long-term activity and thus a better customer lifetime value (CLV). As a result, the payback periods of new customers are only slightly longer. At EUR 13.8 million, marketing expenses in the first half of 2021 were below the prior-year level (2020: EUR 18.3 million) as a result of the significantly weaker jackpot development.

Profitability significantly improved

Personnel expenses and other operating expenses of EUR 10.2 million and EUR 23.7 million, respectively, were also well below the corresponding prior-year figures (2020: EUR 11.2 million and EUR 30.1 million). Consequently, adjusted EBITDA rose to EUR 10.7 million (2020: EUR 3.3 million) - there were no non-recurring expenses or income. The Germany segment accounted for EUR 9.8 million of this amount (2020: EUR 1.5 million). EBIT and net profit of EUR 6.3 million and EUR 5.7 million, respectively, were also well above the prior-year figures (2020: EUR 2.0 million and EUR 0.4 million).

"The fact that we have managed to continue to grow with a significantly weaker jackpot development compared to the previous year makes us proud and shows us that we have taken the right measures to continuously improve both in terms of customers and results," says Jonas Mattsson, CFO of ZEAL Network SE. "The scalability of our business model will also help us in the future to take advantage of market opportunities, adapt to the dynamic environment and continuously optimise."

Guidance confirmed

For the fiscal year 2021, ZEAL continues to plan the expansion of its market leadership as an online provider of state lottery and other permitted lottery products. Depending on the general conditions, in particular the jackpot development, the Company still expects billings of at least EUR 700 million for the Germany segment. Following exceptionally strong jackpots in the previous year, ZEAL has assumed an average jackpot development, resulting in a lower growth rate than in the previous year. Moreover, the Company continues to expect revenue of at least EUR 95 million in fiscal year 2021. With similarly high marketing investments as in the previous year of around EUR 32 million, adjusted EBITDA is still expected to reach at least EUR 20 million.