Overview: ZEAL Network’s Growth in H1 2023
Jonas Mattsson, the CFO of ZEAL Network, underscored a potent 15% upswing in billings volume YoY during the first half of 2023, augmented by strategic growth investments and significant customer acquisition, especially during high jackpot phases. Remarkable events included acquiring and launching a new games license and celebrating a customer securing a mega jackpot in August – marking the third instance this year.
Strategic Expansion in Online Games Business
After securing its license, ZEAL launched its online games business, offering 18 games and targeting expansion in 2024. Notably, while their primary lotteries, Lotto 6 out of 49 and Euro jackpot, exhibited varying jackpot developments, the former demonstrated an enhanced performance relative to the preceding year.
Financial Outcomes and Revenue Increase
Revenue and Costs Development
The company witnessed an 11% revenue increase, chiefly spurred by a June surge. Conversely, total costs escalated by approximately 20%, with a notable 44% increment in marketing costs compared to the previous year, majorly focused on customer acquisition. The EBITDA was recorded at around 40 million euros, resulting in a 25% EBITDA margin for this span, with a slight decline largely attributed to amplified marketing expenditures. Net profit remained around 6 million euros.
Transaction Volume and Dividend Payment
The transaction volume soared by an impressive 50%, touching 412 million euros, predominantly fuelled by the peak jackpot in June. Even after a substantial dividend payment of nearly 80 million euros in May, the company maintained a net cash position of 23 million euros. New customer registrations experienced a nearly 20% surge, amassing 349,000 new patrons.
ZEAL’s Guidance and Future Outlook
In conclusion, Jonas outlined ZEAL’s annual projections: billings ranging from 800 to 830 million euros, revenues oscillating between 110 to 120 million euros, and an anticipated EBITDA settling between 30 to 35 million euros. Emphasis was placed on the company’s thriving business growth, the strategic inauguration of the online games business, and an aggressive customer acquisition strategy.
May 10, 2023
06:37 
