Zeal Network, the German online provider of state lottery products, saw its revenue fall in the first nine months of the year due to a €26.3m jackpot win an organisational changes resulting from the takeover of Lotto24 AG.
Billings of the Zeal Group – including Lotto24 AG, fully consolidated since May – rose by 57 per cent to €332.6m in the first nine months of 2019 (2018: €212.4m, up three per cent on a like-for-like basis).
However, due to the jackpot win of €26.3m in August 2019, revenue of €93.2m (2018: €111.2m) and total operating performance of €101.2m (2018: €114.1m) ended up below the respective prior-year figures.
As part of the business model change implemented in October, which returned the Tipp24 secondary lottery back to the German brokerage business, fluctuations in revenue and other operating income due to jackpot-related winning payouts are no longer expected in the future.
Jonas Mattsson, CFO of ZEAL Network SE, said: "We kept what we promised: We defined the new organisational structure, reduced the number of employees as planned, implemented the business model change, stopped the secondary lottery business and relocated the company headquarters back to Germany.
“The implementation of cost synergies is also proceeding according to plan. We are confident and look forward to continuing our recent success story with our future focus on the sustainable, continuously growing and socially valuable German lottery brokerage business.”
