Publishing its results for 2018, Zeal Network reported an 85 per cent leap in earnings (adjusted EBIT) to €46.6m, as the company moves closer towards completion of its acquisition of Lotto24.
Billings and revenue grew for the third consecutive year, rising six per cent to €296.3m, while revenue increased 15 per cent to €154.8m. Total Operating Performance was €159.7m, an increase of 13 per cent year-on-year.
Zeal also acquired a record number of new customers for the group and its partners, while significantly reducing acquisition costs. The 614,000 new registered customers is a 49 per cent year-on-year rise, while the cost per lead in the lottery betting business fell by 42 per cent in 2018.
Dr Helmut Becker (pictured), CEO of Zeal, said: “2018 was a pivotal year for Zeal. We delivered excellent financial results, continued to lay the groundwork for international diversification, and made ourselves more efficient.
“Through our plan to acquire and reunite with Lotto24 we created a sustainable growth path for our core German business. Online penetration in the global lottery market remains low and the opportunity is as exciting as ever. I believe we have positioned Zeal exceptionally well for the future and the sector’s digital shift.”
Jonas Mattsson, CFO for Zeal, added: “Zeal delivered a very strong performance in 2018. We reduced our financial risk, improved our cost structure and increased the efficiency of our marketing – delivering a record number of new customers and excellent financial results. We achieved this while also preparing to adapt for the future as we initiated our plan to reunite with Lotto24 – a strategic move that protects our core business, reduces shareholder risk, and creates strong platform for growth.
“This, combined with our excellent financial performance makes Zeal a highly attractive long-term investment proposition,” said Mattsson.