Jonas Mattsson, the CFO of ZEAL Network, kicked off the presentation by highlighting the company’s robust growth trajectory in the first half of 2023. ZEAL Network experienced a 15% increase in billings volume year-on-year. They capitalized on efficient growth investments, boosting customer acquisition, particularly during high jackpot phases. One of the milestones was the timely acquisition and subsequent launch of a new games license. Another bragging right for ZEAL was witnessing one of their customers clinch a mega jackpot in August – the third windfall this year.
Notably, ZEAL rapidly launched its online games business shortly after receiving its license. They have 18 games available, with plans to expand in 2024. Their primary lotteries, Lotto 6 out of 49 and Euro jackpot, have witnessed differing jackpot developments, but overall, the former showed a better performance than the previous year.
On the financial front, revenues rose by 11%, primarily due to a surge in June. However, the total costs saw a rise of around 20%, with marketing costs witnessing a substantial hike of 44% compared to last year, largely aiming at customer acquisition. EBITDA stood at nearly 40 million euros, equating to a 25% EBITDA margin for this period, a slight dip mainly attributed to the increased marketing expenses. The company’s net profit hovered around 6 million euros.
Delving deeper, the transaction volume grew by a striking 50%, reaching 412 million euros, largely catalyzed by the peak jackpot in June. Despite the large dividend payment of nearly 80 million euros in May, the company still boasts a net cash position of 23 million euros. Encouragingly, new customer registrations surged by almost 20%, accumulating 349,000 new customers.
Lastly, Jonas touched upon the company’s guidance for the entire year. They project billings between 800 to 830 million euros and revenues between 110 to 120 million euros. Their EBITDA is expected to settle between 30 to 35 million euros. Jonas concluded the presentation by emphasizing their successful business growth, the online games business’s strategic launch, and aggressive customer acquisition strategy.
May 10, 2023
06:37 
seat11a – Publicly Listed Companies: Elevator Pitch, Deep-Dive, Financial Results, and ESG
Reviews for ZEAL Network SE Financial Results H1 2023 | Rapid Growth & Game Expansion Highlights with CFO