Cost-saving measures imposed by German online lottery provider Zeal Network helped the company hit its expected EBITDA mark of €28.8m.
In a year in which Zeal acquired and integrated Lotto24, changing its business model to lottery brokerage and relocating its back office operation to Hamburg, billings increased by 58 per cent to €466.7m (2018: €296.3m) while the company’s preliminary revenues of €113.5m were down from the previous year’s €154.8m. Zeal stated this was due in particular to prize payout of €26.3m from the former secondary lottery business and the announced revenue dis-synergies caused by the business model change.
“As a result of the business model change, such strong fluctuations brought about by jackpot-related prize pay-outs will no longer occur in the future,” Zeal stated.
In its 2020 outlook, Zeal laid out its plans to further expand “market leadership” as an online provider of state lottery products through its Lotto24 and Tipp24 brands, expecting billings of €550 to €570m and revenues of €70m to €73m this year.
