Online lottery provider Zeal Network to beat full-year estimates

Adjusted EBITDA is now forecast to reach €12.4m
Adjusted EBITDA is now forecast to reach €12.4m

The German provider has revealed that revenue and EBITDA are expected to beat estimates for its first full year as a lottery broker.

Germany.- The online lotteries provider Zeal Network said that it expects to beat its billings, revenue and adjusted EBITDA forecasts for its full 2020 fiscal year.

Zeal already increased its full-year financial projections twice, in July and October, but expects to see those surpassed thanks to a strong jackpot environment and customer growth in the fourth quarter.

See also: Germany: Lottery bets grew in 2020

It said billings for the 12 months up to December 31 are now expected to reach €652.8m, an increase of 39.9 per cent year-on-year. Its last guidance predicted billings of between €610m and €630m.

Revenue is expected to fall by 23.4 per cent year-on-year to €86.9m, but this would remain above the company’s last guidance of between €80m and €83m.

Marketing costs increased by 48.4 per cent year-on-year to €32.3m, however in the fourth quarter Zeal achieved 100 per cent of the cost synergies it planned to achieve by May 2021.

Adjusted EBITDA is now forecast to reach €12.4m, down 57.8 per cent on 2019 but above the October guidance of between €8m and €10m.

It is the German provider’s first full year since it transformed from a lottery betting operator into a lottery broker

See also: Lottery betting giant loses appeal against fine in Sweden

Zeal discontinued its lottery betting business in October 2019.

It has now fully consolidated Lotto24, the online lottery brokerage business it acquired in May 2019, and has seen positive jackpot development.

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