Online Lottery Operator Zeal Reports Mixed Revenue Results for 2023
LISTEN TO THIS ARTICLE:Zeal Network SE, the online lottery operator, has published its report for the fiscal year 2023 and while revenue was up, net profits were down due to increased expenses.
The company saw ticket sales, also known as billings, increase 11.2% from the previous year to €843.3 million. Furthermore, revenue grew 10.4% to €116.1 million and the company hit a new five-year high in EBITDA of €32.9 million. However, costs were higher across all segments, which left the company with a pre-tax profit of €23.3 million, a fall of 2.2% from 2022.
Zeal Launches Online Games Offering
Looking back at 2023, a major change for the company was the launch of its online games offering. The company introduced games through its Lotto24 B2C subsidiary and its sister brand Tipp24 in Germany in June last year. According to Zeal, this generated an extra €3 million in revenue in 2023.
In 2023, we further expanded our position as a market leader. We are benefiting from our strong brands. Lotto24, for example, has developed into a winner's factory, producing more record winners last year than any other lottery provider in Germany. Our strong top and bottom-line results and our market share, which has grown to 41.4%, show that we are on the right track. We are, therefore, looking to the future with determination and confidence.
According to Zeal’s report, the increased ticket sales and revenue were the result of improved customer engagement and targeted marketing. Furthermore, while there was a fall in customer acquisition when compared to 2022 due to challenging jackpot conditions, the company’s strategic investment in developing brands and marketing has supported its growth trajectory.
Expansion Plans for 2024
Over the coming year, Zeal is aiming to consolidate its market position within the sphere of online lottery, speed up the growth of the online games offering, and launch new products in the charity lottery segment.
Zeal is expecting revenue of between €140 million and €150 million for the 2024 fiscal year and EBITDA of between €38 million and €42 million.
In related news, the company has been accepted into the World Lottery Association (WLA), which is a testament to its commitment to industry standards and responsible gambling. It has also said that it intends to acquire the remaining shares of the Lotto24 subsidiary.
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