Zeal Network expects 21% increase in revenue in 2022
The German lottery group says investment has led to strong growth.
Germany.- The lottery group Zeal Network has announced that it expects to report a 21 per cent rise in annual revenue for 2022. It said investment across all areas had led to strong growth, with its market share up from 39 per cent to 41 per cent.
Revenue is forecast to come in at €105.2m. Stakes are estimated to be up 16 per cent at €758.4m and customer numbers up by 29 per cent on the back of marketing actions for high jackpots. Those initiatives saw marketing costs rise by 52 per cent to €34.1m and operating expenses by 39 per cent to €57m. EBITDA is forecast to hit €3.9m.
The past year saw Zeal’s Lotto24 gain a new licence for lottery brokerage in Germany. This year, the group intends to expand its market position further by introducing new products.
Chief financial officer Jonas Mattsson said: “We are proud of our strong development despite the ongoing global uncertainty and the resilience in the lottery products these times. The positive development of our business figures in almost all areas proves that we have sustainably invested in our own growth with our measures in 2022.
“In 2023, we will not only focus on further expanding our base business but also drive innovation to further extend our market leadership.”
Last month, London-listed Zeal announced that its co-founder Marc Peters has left his role on its supervisory board. Peters, who owns 4.46 per cent of Zeal’s stock, will be replaced by Kenneth Chan.
Zeal brokers tickets for state lotteries and charity lotteries in Germany via Lotto24 and Tipp24. Peters co-founded Zeal in 1999 and returned to the company as a member of the supervisory board in June 2019 after its acquisition of Tipp24, which had been spun off in 2012.
