Zeal revenues up 19% on strong Q4 performance
Operator exceeded guidance despite “exceptionally weak jackpot environment” and higher hedging costs
Zeal Group today reported a 19% year-on-year annual revenue increase to €134.3m in its preliminary FY17 results.
The operator said results exceeded guidance and were delivered in spite of an exceptionally weak jackpot environment during Q3, higher hedging costs after rule changes to EuroMillions, and significant pay-outs, including a single €15m prize in Q1.
However, the lottery firm delivered EBIT of €25.2m, down from €38m in 2016 and total operating performance (TOP) of €141.2m. Total billings for the year were steady year-on-year at €280.5 million.
Meanwhile, Q4 2017 billings rose 21% from Q3 to €78.8m, driven by the launch of new product Powerball and strong performance on the Spanish Christmas lottery, El Gordo.
A further focus on customer acquisition in 2017 delivered an annual increase of 31% for newly registered customers to 411,000 while the Group successfully launched in Norway and the UK.
Zeal CFO Jonas Mattsson said: “2017 was an exciting and satisfactory year for Zeal Group.
“We delivered strong financial results in challenging conditions, including an exceptionally strong fourth quarter performance.
“This just goes to highlight the underlying strength of our business, and gives me confidence for the future.”
In January 2018, Zeal Group announced that through the implementation of its new hedging structure via its myLotto24 brand, it has reduced its risk exposure by €20m over two years.
Zeal CEO Dr. Helmut Becker added: “We made good strategic progress in 2017: launching in three new markets, improving our products, enhancing our technology and operational efficiency, acquiring more new customers, and continuing to unearth new ways to disrupt the lottery industry.
“While the regulatory environment remains challenging, we believe the global lottery market is full of, as yet, untapped potential.
“As a diverse and long-term focused business, we are well positioned to take advantage of those opportunities,” he added.