ZEAL Group aims for global growth after solid H1

ZEAL Group aims for global growth after solid H1

Tuesday, August 15, 2017 Posted by Andy McCarron
Internationalisation expansion programme kicking in for lottery group

Frankfurt-listed European digital lottery operator ZEAL Group has reported a ‘solid first half to 2017’, stating that it has performed well against key performance indicators as the company continues its international expansion strategy.

Updating investors, ZEAL would report H1 2017 group operating revenues of €64 million (H1 2016: €61 million). The company detailed that its revenue performance had been aided by its ‘expanded product portfolio’ releasing new games "Danke Million" and "Cash4Life", during the period.

Investing in its ‘internationalisation strategy’, ZEAL governance has reported an EBIT of €7.9 million down on corresponding H1 2016’s €10.2 million.

The company detailed that it had carried out M&A activity acquiring US social gambling start-up Omaze for €2 million in May, combined with higher group marketing costs to gain traction within its new markets.

Closing a busy H1 2017 period, ZEAL governance would declare group net-profits of €5.6 million (H1 2016: €6.3 million).

Dr Helmut Becker, CEO of ZEAL, commented on H1 2017 performance: "In the first half of the year, we made good progress and stayed fully in line with our internationalisation strategy. Later this year, we expect to receive a licence to operate in the Czech Republic. Our innovative lottery products and long-standing experience help us to make successful new market entries. At the same time, we further push the expansion of our B2C product portfolio and make strategic investments, including our stake in Omaze."

The Frankfurt-listed company remains confident of hitting its full-year 2017 revised forecasts, targeting group revenues of + €130 million combined with an EBITDA range of €15-25 million.

Just last week ZEAL also revealed that its affiliate compay Tipp24 has rebranded to mylotto24 in Ireland. Shenaly Amin, myLotto24’s Irish Country Manager, explained: “We simply feel that the name myLotto24.ie will resonate more strongly with our customers here in Ireland. myLotto24 is already a very well-established global brand, with up to 100,000 winners per week across Europe and €1 billion paid out in prize money."

Totally Gaming says: 2017 has seen ZEAL governance continue its international expansion into new territories. The company seeks to become outright market leader in digital lotteries and is not afraid to back its new market investment with M&A product synergies. The Frankfurt-listed operator should be on investor radars, should its strategy gain traction in the coming months and see ZEAL revenue and EBIT metrics improve.

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