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ZEAL presents strong nine-month figures: Double-digit growth in revenue and billings

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ZEAL Network SE, the leading German online provider of lottery products, significantly increased its billings and revenue in the first nine months of 2023. In addition, ZEAL acquired more new customers than in the previous year, further strengthening the basis for future revenue growth.

“The strong growth in our billings and revenue proves that we continue to expand our market leadership,” says Sebastian Bielski, CFO of ZEAL. “The publication of the first figures for our online games business also show that ZEAL has made the right decision to enter this new line of business. The initial success in the online games segment also makes us confident that we are on track for further growth with our attractive and growing games offering.”

More sales and billings through marketing investments

Driven in part by a successful third quarter, ZEAL Group’s billings grew by 16 percent to € 633.2 million in the first nine months of 2023 (2022: € 544.4 million). At the same time, revenue also increased by 16 percent to € 86.0 million (2022: € 74.5 million). At 12.5 percent, the company’s gross margin was close to the previous year’s figure (2022: 12.8 percent).

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In the first nine months of the year, ZEAL was able to use the attractive jackpot phases in January, March, June and September to acquire new customers and further expand its business volume. The company intensified its marketing activities during high jackpot phases and promoted future sales growth through intensified TV advertising.

Strong EBITDA despite increased new customer acquisition

In the first nine months of 2023, ZEAL acquired 518 thousand new customers (2022: 501 thousand). Due to ongoing media-cost inflation, intensified competition for new customers in online channels, and the company’s strategic decision to invest into brand-building through increased TV advertising, the acquisition costs per registered new customer (cost per lead, CPL) were higher than in the previous year at € 46.81 (2022: € 36.42). Overall, marketing expenses were 27 percent higher than in the previous year at € 30.7 million (2022: € 24.1 million). For this reason, other operating expenses rose to € 48.8 million (2022: € 40.6 million). Even taking into account ZEAL’s increased investment into marketing, EBITDA increased by 5 percent to € 23.2 million (2022: € 22.0 million). EBIT amounted to € 16.7 million (2022: € 15.5 million) while the after-tax result for the period fell to € 10.1 million (2022: € 12.1 million) due to a € 1.1 million decrease in the financial result and a significant increase in tax expenses compared to the previous year.

First figures for Online Games

With the results for the third quarter of 2023, ZEAL is presenting its first business figures for its online games offering launched in June 2023. Since the launch of the offering, ZEAL has started to grow its games portfolio. Revenue in the third quarter of 2023 amounted to € 1.2 million. As the offering was started only recently there are no comparative figures for the previous year.

Forecast confirmed

For the 2023 financial year, ZEAL continues to plan to expand its market leadership as an online provider of lottery products and introduce new products, including additional online games. For the Germany segment, ZEAL anticipates billings from lotteries (excluding games) in the range of € 800 million to € 830 million, assuming an average jackpot development. In addition, ZEAL continues to assume that revenue in the 2023 financial year will be between € 110 million and € 120 million. ZEAL expects EBITDA to be in the range of € 30 million to € 35 million. The company continues to expect to invest significantly more in new customer acquisition compared to the previous year and expects marketing expenses of € 34 million to € 39 million.

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FANDOM EXPLORES THE GROWING IMPORTANCE OF GAMING & SELF-EXPRESSION IN 2024 INSIDE GAMING REPORT

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Study Provides New Insights Into How Brands Can Authentically Engage With Gamers to Help Them Express Their Best Selves Off-Screen.

KEY FINDINGS

Gaming has exploded over the past decade, becoming one of the most dynamic and expansive industries across the globe. Fandom, the world’s largest fan platform, dives into the heart of the gaming community to uncover the evolving motivations behind why people game in its 4th annual Inside Gaming report. The 2024 Inside Gaming report – a proprietary study coupled with Fandom’s first-party data from its 350 million monthly unique visitors, 45 million pages of content and 250k fan-powered wikis – captures a notable shift: gaming is increasingly seen as a means for personal expression, exploring one’s identity and providing empowerment and confidence in one’s real life.

Dominant Gaming Motivations

  • While stress relief remains the top reason people turn to games, a striking 46% of gamers list creation, imagination, and self-expression as their main motivations for gaming, up 10% from last year.

Influence on Gaming Habits

  • People who are gaming for self-expression, creation & imagination are 30% more likely to increase their gaming time, feeling more drawn to the gaming world than ever before.

Games Driving Self-Expression

  • 60% of gamers claim that self-expression through gameplay is more important to them than ever before. Titles like Minecraft, Fortnite, and Roblox lead in enabling personal expression through extensive customization options, open-world exploration, and other game updates

Exploring Gamer Identity

  • The report also highlights a significant gap between players’ in-game identities versus their real-life personas, with 80% of respondents feeling their gaming identity differs from their real-life identity.
  • However, half of respondents claim they’d prefer to be more like their in-game personality IRL and 72% would feel more favorably towards brands that help them achieve this.
  • This is especially true of 18-34 year olds, multicultural (specifically African American & Hispanic) audiences as well as women and non-binary audiences.

OPPORTUNITIES FOR MARKETERS

Emphasize Self-Expression:

  • Self-expression is a key driver for gaming engagement. In fact, 32% of gamers want their physical appearance to be more like their in-game appearance.
  • Brands that align with this motivation can enhance their connection with gamers. For example, this represents an opportunity for fashion & beauty brands to explore dedicated product extensions for gamers looking to explore this self-expression.

Create Brand Safe Spaces:

  • 64% believe that gaming communities are vital safe spaces where they can truly be themselves, presenting opportunities for brands to foster and cater to these communities.

Align with Gamers’ IRL Aspirations

  • Many gamers wish to integrate their gaming and real-life personas. Brands that help facilitate this integration can achieve deeper consumer relationships.
  • The study found that 48% of gamers want their IRL skills to be as strong as their gaming skills, opening up an opportunity for brands to explore how they can create ways to provide gamers with products that enhance IRL skills and provide a sense of accomplishment & achievement they get while playing.

 

“From character customization to cosplay and content creation, video games have empowered gamers to explore, express and enhance their identity – nearly two thirds of gamers claim it’s easier to be themselves with a controller in their hands,” said Stephanie Fried, CMO of Fandom. “With the growing significance of gaming as a means for self-expression and personal evolution, it’s crucial for brands to connect to these motivators to help players bring their gaming personas to life in the real world.”

For an interview with a Fandom executive to discuss the study in more detail, please contact Rachelle Savoia at [email protected].

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Methodology:

Fandom surveyed 5,000 entertainment and gaming fans globally to understand the ever changing entertainment landscape. The insights from the study were joined with proprietary insights from Fandom’s first-party platform data of over 350MM users, 45MM content pages across 250K wikis.

 

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Press Releases

Gambling.com Group to Participate in Upcoming Investor Conferences

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Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a fast-growing provider of digital marketing services for the global online gambling industry, today announced that senior management will participate in four upcoming institutional investor conferences:

B. Riley Securities 24th Annual Institutional Investor Conference

  • Location: Beverly Hills Hilton Hotel – Beverly Hills, CA
  • Date: Wednesday, May 22, 2024 and Thursday, May 23, 2024
  • Format: Meetings with Institutional Investors
  • Attending: Peter McGough, Sr. V.P. Investor Relations & Capital Markets

Please contact your B. Riley sales representative to register for the conference and to request a meeting with Gambling.com Group.

Craig-Hallum 21st Annual Institutional Investor Conference

  • Location: Depot Renaissance Hotel – Minneapolis, MN
  • Date: Wednesday, May 29, 2024
  • Format: Meetings with Institutional Investors
  • Attending: Elias Mark, Chief Financial Officer, and Peter McGough, Sr. V.P. Investor Relations & Capital Markets

Please contact your Craig-Hallum sales representative to register for the conference and to request a meeting with Gambling.com Group.

Stifel 2024 Cross Sector Insight Conference

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  • Location: The InterContinental Boston – Boston, MA
  • Date: Tuesday, June 4, 2024
  • Format: Fireside Chat Presentation at 10:55 a.m. ET and Meetings with Institutional Investors
  • Attending: Charles Gillespie, Co-Founder and Chief Executive Officer, and Peter McGough, Sr. V.P. Investor Relations & Capital Markets

Please contact your Stifel sales representative to register for the conference and to request a meeting with Gambling.com Group.

Jefferies 14th Annual Consumer Conference

  • Location: White Elephant Hotel – Nantucket, MA
  • Date: Monday, June 17, 2024 and Tuesday, June 18, 2024
  • Format: Meetings with Institutional Investors
  • Attending: Peter McGough, Sr. V.P. Investor Relations & Capital Markets

Please contact your Jefferies sales representative to register for the conference and to request a meeting with Gambling.com Group.

 

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Gambling in the USA

Thousands attend grand opening of Pinkbox Doughnuts® at the Pahrump Nugget Hotel & Casino in Pahrump, Nevada

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Thousands of people gathered Saturday morning for the grand opening of the award-winning and wildly popular Pinkbox Doughnuts ® at the Pahrump Nugget Hotel & Casino, located at 681 Hwy. 160.

The grand opening event started with an official ribbon-cutting with numerous local dignitaries including:

  • Justice of the Peace for Nye County Michele Fiore,
  • Nye County Sheriff Joe McGill, and Jenney Sartin,
  • CEO of the Pahrump Valley Chamber of Commerce.

At the event, Pinkbox Doughnuts also made donations via large check presentations to the Pahrump Valley High School and Pat Leming of Never Forgotten Animal Society. Pinkbox’s signature grand opening festival-style celebration followed with performances by the Pahrump Valley High School Dance Team and numerous family friendly activities such as balloon art, face painting, and games. Records were broken in doughnut eating contests, and winners received a Pinkbox Doughnuts gift card. In addition, three lucky customers who found a “Pink Ticket” in their doughnut won free doughnuts for a year.

Located by the hotel entrance, across from the registration desk, the new Pinkbox Doughnuts shop welcomes guests with its fun design elements and trademark décor, including pink drips, a graffiti wall, and an over-sized Pinky statue that is a perfect companion for photos.

An illuminated oversized doughnut display case showcases Pinkbox Doughnuts’ full line of more than 70 creatively designed, delicious doughnuts that will be sold seven days a week. The shop also features Pinkbox Doughnuts’ full coffee program including premium roast coffee, lattes, cappuccinos, mochas, nitro cold brew and more.

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“The fantastic community of Pahrump has been eagerly requesting Pinkbox Doughnuts, and as the saying goes: ask and you shall receive,” stated Judith Perez Siegel, executive vice president of Pinkbox Doughnuts. “No need to journey to Las Vegas anymore; we’ve brought our fun, unique, and one-of-a-kind doughnuts directly to you. We’re ecstatic to join this wonderful community and share our doughnuts, guaranteed to bring smiles to everyone.”

“We are thrilled to welcome Pinkbox Doughnuts to Pahrump, where our community will not only enjoy their amazing doughnuts, but also a fun, whimsical experience of their playful shop,” said Eliot Ripoll, vice president and general manager of Pahrump Nugget Hotel & Casino. “The addition of Pinkbox Doughnuts to the property furthers our commitment to enhancing the Pahrump Nugget guest experience.”

The Pinkbox Doughnuts shop in Pahrump created more than two dozen jobs. The Pahrump shop is the twelfth location for the fast-growing Vegas-born doughnut brand, which currently boasts eight locations across the metropolitan Las Vegas Valley in addition to a shop at the Arizona/Nevada border in Laughlin, at the California/Nevada border in Primm, Nevada and in St. George, Utah.

For more information on Pinkbox Doughnuts, shop locations, hours, and doughnut varieties, please visit pinkboxdoughnuts.com.

 

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