Zeal benefits from UK PoC Tax

Zeal benefits from UK PoC Tax

Thursday, August 13, 2015 Totally Gaming
Dr Helmut Becker welcomed Zeal's H1 performance

Zeal has announced itself as one of the few winners from the UK’s Point of Consumption (PoC) Tax having seen its liabilities drop by €9.2m ($10.2m) in the first half of 2015.

While based in London, the online lottery company operates mainly in other jurisdictions – the opposite of many firms that have seen its tax bills soar since the PoC Tax was introduced in December 2014.

In its results to June 30, Zeal – formerly Tipp24 - reported a “significant decrease of operating expenses” mainly driven by decrease in the gaming duty, and a subsequent 209 per cent year-on-year rise in earnings before interest and tax (EBIT) to €18.5m.  

While the company also saw net profit for the period leap to €12.7m from €1.5m a year ago, the company did see a high prize pay-out of €47.9m compared to just €6.7m in H1 2014.

The pay-out meant that consolidated revenue declined from €68.2m to €25.7m, while total operating performance - which the company uses as a measure for top-line guidance in order to reflect operating income such as hedging payments - was €65.5m compared to €71.2m in the prior year period.

The company- whose subsidiaries include Lottovate, Lotto Network, Geolotto and Ventura24 - confirmed its positive outlook on the full year and expects total operating performance in the range of €135-145m and consolidated EBIT between €35-45m.

The performance was welcome by Dr Helmut Becker, Zeal’s designated chief executive and former chief marketing officer, who will replace Dr Hans Cornehl in the role on September 1.

Becker added: "We have delivered strong earnings growth in the first half of the year and are on track to achieving our full-year targets. The company is well-positioned for further success while we continue to execute on our growth initiatives.”

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