Zeal beats full-year guidance as revenues soar 27%
Online lottery operator's 2016 EBIT ahead of guidance despite a 12% year-on-year decline
Zeal Network has beaten its full-year guidance after the online lottery operator recorded a 26.9% year-on-year rise in revenues and better-than-expected EBIT.
The London-headquartered firm recorded revenues of €112.9m for the 12 months ended 31 December 2016, up from the €89m figure it reported the previous year.
Statutory EBIT stood at €37.9m in 2016, despite jackpot pay-outs “above the statistical average”, a fall of 11.7% compared to 2015 but ahead of its initial €25-€35m guidance.
Meanwhile, total operating performance – which includes other income such as hedging payments – was also ahead of its guided range of €125-135m at €139.6m.
Helmut Becker, chief executive officer at Zeal, said: “We are very pleased with the strong growth in customer activity, which is also reflected in our preliminary financials. Zeal was able to acquire significantly more paying customers.
“This confirms the attractiveness of our products and the effectiveness of our marketing activities. The excellent performance during the year has established a strong foundation for 2017.”
Today’s trading update comes after Zeal recently appointed current board member Peter Steiner to be its new chairman, replacing Andreas de Maizière after six years at the helm.
As part of the transition, de Maizière has resigned from the board, with the handover taking effect at the conclusion of the online lottery operator’s AGM in June.