ZEAL Network SE (-) Preliminary unaudited results: ZEAL Group exceeds guidance in 2017 26-Feb-2018 / 08:06 CET/CEST Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Preliminary unaudited results: ZEAL Group exceeds guidance in 2017
ZEAL Group, the world's leading lottery innovator, today revealed it has exceeded guidance in 2017 as it announced its unaudited preliminary results for the year. The Group delivered EBIT of EUR 25.2 million and Total Operating Performance (TOP) of EUR 141.2 million. Total billings for the year were maintained at EUR 280.5 million[1]. The strong results exceeded guidance and were delivered in spite of an exceptionally weak jackpot environment during the third quarter of the year, higher hedging costs as a result of rule changes to EuroMillions, and significant pay-outs including a single EUR 15 million prize in the first quarter. The Group's fourth quarter performance was particularly strong with billings of EUR 78.8 million; up 21% since the third quarter. This was driven by a combination of its most successful new product launch to date with the introduction of Powerball, and record billings in the Spanish Christmas Lottery, El Gordo. Jonas Mattsson, Chief Financial Officer, ZEAL Group, 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.' The Group continued to make significant progress against its strategy by launching into three new international markets during year, including two in the fourth quarter - Norway and the UK. Its sustained focus on customer acquisition delivered 411,000 new registered customers for the Group and its partners in 2017; an increase of 31% compared to 2016. Dr. Helmut Becker, Chief Executive, ZEAL Group said: '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.' In January 2018, ZEALGroup announced that through the implementation of its new hedging structure, delivered by associated company myLotto24, it has reduced its risk exposure by EUR 20 million over two years, freed up EUR 10 million of cash, improved the capital efficiency of its hedging operations and secured greater flexibility to match its international growth. ZEAL Group will publish its audited annual results for 2017 on 22 March 2018. Selected preliminary unaudited results to 31 December 2017:
For 2018, ZEAL Group expects to deliver EBIT in the range of EUR 33 million - EUR 43 million, and Total Operating Performance (TOP) of EUR 150 million - EUR 160 million. ZEAL Group expects to pay a dividend of at least EUR 1.00 per share in 2018, subject to financial performance. [1] Billings comprise all stakes from customers (including brokerage stakes) net of free bets - ENDS - Contacts: Media Relations: Matt Drage, Head of Corporate Communications +44 (0) 7976 872 861 matt.drage@zeal-network.co.uk Investor Relations: Frank Hoffmann: +44 (0) 20 3739 7123 frank.hoffmann@zeal-network.co.uk Notes to Editor:
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ISIN: | GB00BHD66J44 |
Category Code: | TST |
TIDM: | - |
LEI Code: | 391200EIRBXU4TUMMQ46 |
Sequence No.: | 5238 |
End of Announcement | EQS News Service |
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657501 26-Feb-2018