Key points:
- Revenue, EBITDA and EBIT were all up during the nine-month period, growing by 41%, 51% and 74% respectively
- The Hamburg Local Court appointed Carola Gräfin von Schmettow to Zeal’s Supervisory Board, effective immediately
- Full-year revenue guidance has been increased to €158m-€168m
Zeal has reported its financial results for the first nine months of 2024. In total, the German lottery provider reported consolidated revenue of €121m ($129.7m), up 41% year-on-year, with EBITDA reaching €35m, up 51%. EBIT continued this trend, reaching €28.9m for the period, up a sizeable 74%.
Of this, lottery revenue came to €107.6m, up 35%, with billings up 17% to €743.1m. This is reflected in a 17% increase in average active customers per month, though billings per customer remained equal to last year’s results.
In total, 807,000 new customers signed up during the nine-month period, up 56% from the same period last year. Looking at the third quarter specifically, new customers increased by 28%, though there was no maximum jackpot for the Eurojackpot and Lotto 6aus49, unlike last year. New customer acquisition costs were also down, with cost per lead down to €35.54, 24% less than this time last year.
However, this was balanced by an increase in operating expenses, which were up 29% to €63.2m for the nine-month period. Marketing expenses were up 20% to €36.9m (on account of the positive jackpot situation for the provider).
During the period
During the nine-month period, Zeal launched a new charity lottery, Dream House Raffle (Traumhausverlosung). The home on the Baltic Sea was raffled off in early November, with a second raffle soon following.
Zeal also completed squeeze-out efforts with Lotto24 AG during the period, with Lotto24 AG agreeing to transfer the remaining company shares from minority stakeholders to Zeal following its Annual General Meeting on 27 August. The move was completed was completed on 16 October.
Zeal’s Management Board and Supervisory Board has also decided to cancel all 733,851 treasury shares currently held by Zeal and reduce the company’s share capital, with the move relating to roughly 3.3% of Zeal’s share capital.
Zeal hires Carola Gräfin von Schmettow
On the topic of the Supervisory Board, Carola Gräfin von Schmettow has been appointed to the Zeal Supervisory Board via the Hamburg Local Court. Von Schmettow comes to the role with close to 30 years of experience at HSBC Germany, of which 17 were spent on the Management Board and six spent as Spokeswoman of the Management Board.
On her appointment, Von Schmettow said: “I am very much looking forward to working with my colleagues on the Supervisory Board and the Management Board. Zeal is celebrating its 25th anniversary this year as a German e-commerce pioneer and, with its innovative and entrepreneurial approach, has outstanding potential for further sustainable growth.”
Foreward facing
Looking ahead, Zeal has raised its full financial year expectations to €158m-€168m, from an original estimate of €140m-€150m. Its EBITDA range has also been increased by €4m, to somewhere in the range of €42m-€46m.
Most competitors with Zeal have yet to publish their Q3 results, making it challenging to compare Zeal’s performance with others. However, IGT is expected to post its financial results during the week starting 12 November.
French lottery operator and long-time IGT partner FDJ reported its Q3 results in October. In total, lottery revenue for the nine-month period totalled €1.5bn, up 6.6% on both a year-on-year and like-for-like basis, with Q3 accounting for €495m, up 10%.
