Zeal has reported both strong financial results and a record high for customer acquisition for 2018.
The group delivered an 85 per cent increase in adjusted EBIT to €46.6m, generating statutory EBIT of €38.3m. The adjustment accounts for one-off costs primarily associated with the Lotto24 transaction and restructuring. Billings and revenue grew for the third consecutive year, with the former up six per cent to €296.3m and the latter increasing 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 its acquisition costs. The 614,000 new registered customers represent a 49 per cent increase on the previous year, while the cost per lead in the lottery betting business reduced by 42 per cent in 2018.
Jonas Mattsson, CFO, said: "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."
Helmut Becker, CEO, added: "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."
