Published
OnlineLand-BasedLotteryFinancialIndustry

Zeal Network reports 23% drop in revenue for 2020

German-based Zeal Network has published its 2020 annual report, which shows revenue dropped to €87m ($102.6m) from €113.5m the previous year.

GermanLottery

The company stated that changing its business model and expected dis-synergies led to the overall drop. This also resulted in reduced adjusted EBITDA of €12.7m, which fell from 2019’s €29.4m.

Despite this, Zeal did report some positives; it was able to gain 918,000 new customers in Germany, as the average number of monthly active users increased to 986,000.

The group was also able to reduce its cost base as personal and operating expenses fell by €13.8m, despite an increase in marketing expenses. It reached its cost synergy target a year in advance.

Jonas Mattsson, Zeal Network CFO, said: "We have delivered on our promises and already fully realised the planned cost synergies in the fourth quarter 2020. At the same time, we have grown our business and launched new products. We are delighted all this is also reflected in our share price performance."

Zeal provided 40% of its stakes to good causes in 2020, over €3.1bn was transferred to state budgets or beneficiaries. This equals to €8.6m a day provided by Zeal to German projects around welfare, sport, and culture.

The firm has stated it plans to expand its market as an online provider in 2021. It expects the revenue to be around €95m and adjusted EBITDA to reach at least €20m.

Dr Helmut Becker, Zeal Network CEO, adds: "With our combination of commercially sensible marketing investments, high new customer growth, powerful technology and exciting product innovations, we have set the course for a highly promising future."

Premium+ Connections
Premium

Digitain

 
Premium

GammaStack

 
Premium

RISK

 
Premium

Galaxsys

 
Premium

PIN-UP Partners

 
Premium

1xBet Partners

 
Premium

Sport Generate

 
Premium

Imagine Live

 
Premium

Revsharks

 
Premium

Lynon

 
 
Premium Connections
Consultancy

SCCG Management

Executive Profiles
Zeal Network SE

Stefan Tweraser

VIP Play

Les Ottolenghi

Scientific Games

Keshav Pitani

Social & App

Spribe CEO exclusive: Simplicity is the foundation

Spribe CEO David Natroshvili speaks to Gambling Insider abou...

Redefining iGaming: A history of crash games

Crash games is a growing vertical that has taken gambling by...

A certain something: What makes crash games special?

Crash games. They’re simple, they’re easy to learn and,...

Smarter innovation to shape the future

Spribe CCO Giorgi Tsutskiridze discusses the past, present a...

Facing Facts: The corner of quarterly contemplation

With Q1 reports out across the industry, Gambling Insider co...

Taking Stock: A guide to key stock prices across the industry

Gambling Insider tracks prices from some of the industry’s...

15 years of Gambling Insider: From the Founders

Over the last 15 years, Gambling Insider magazine has interv...

15 years of Gambling Insider: The Awards over time

Global Gaming Awards Event Manager Mariya Savova gives us he...