EQS-News

ZEAL continues to grow in the first nine months of 2022

EQS-News: ZEAL Network SE / Key word(s): Quarterly / Interim Statement/Quarterly / Interim Statement ZEAL continues to grow in the first nine months of 2022 10.11.2022 / 07:41 CET/CEST The issuer is solely responsible for the content of this announcement. ZEAL continues to grow in the first nine months of 2022

• New customer growth accelerated
• Highest jackpot in the history of the Federal Republic in July
• Public share buyback offer until November 29, 2022
• Forecast confirmed

Hamburg, 10 November 2022. ZEAL Network SE, the leading German online provider of lottery products, continued to increase its business volume in the third quarter of 2022. While many e-commerce sectors were still affected by declining purchasing power and the effects of inflation, the lottery market, once again, showed its resilience and even benefited from the positive jackpot environment in July.

Increase in billings, sales and gross margin
ZEAL Group's transaction volume increased by ten percent to 544.4 million euros in the first nine months of 2022 (Q1-Q3 2021: 493.2 million euros). At the same time, revenues grew by 14 percent to 74.5 million euros (Q1-Q3 2021: 65.1 million euros).

The market environment for lotteries in Germany in the first nine months of 2022 was better than in the previous year, as the number of bigger jackpots was back on statistical average. For example, the LOTTO 6aus49 lottery reached the EUR 45 million mark two times in two consecutive draws, triggering a mandatory payout in each case. In the European lottery Eurojackpot, a previously unattained record jackpot of EUR 110 million was won in the first nine months of 2022 and cracked by a LOTTO24 lottery club from North Rhine-Westphalia. In July, the Eurojackpot also rose to the highest possible value of EUR 120 million for the first time.

In the first nine months of 2022, ZEAL acquired 501 thousand registered new customers (Q1-Q3 2021: 446 thousand). Here, the increased acquisition costs per registered new customer (cost per lead, CPL) of € 36.42 (Q1-Q3 2021: € 27.57) are primarily based on a special offer for the freiheit+ social lottery in January 2022. Without this effect, the CPL would have increased significantly less at € 34.58. At € 24.1 million, marketing costs in the first nine months of 2022 were 29 percent higher year-on-year (Q1-Q3 2021: € 18.6 million) due to the stronger jackpot situation.