Central Europe
ZEAL starts with 35 percent revenue growth into the year 2024
ZEAL Network SE, the leading German online provider of lottery products, has started the new financial year with a strong growth spurt. In the first quarter of 2024, billings from lotteries climbed by 22% to € 246.3 million. Group revenue increased by 35.0% to € 36.1 million (2023: € 26.7 million). EBITDA at Group level increased slightly by 1% to € 9.4 million due to one-off effects and the almost doubling of marketing expenses compared to the previous year.
“We made a very strong start to 2024 and were able to significantly accelerate our revenue growth, particularly in our core business of lottery brokerage. We are also particularly proud of the fact that we were able to achieve EBITDA slightly above the previous year’s level in the past quarter despite almost doubling our marketing expenses and a negative one-off effect from a major win in our charity lottery Deutsche Traumhauslotterie amounting to € 0.8 million. This shows that our measures to acquire new customers are paying off very quickly and that we are generating income across the entire breadth of our customer base,” says Sebastian Bielski, CFO of ZEAL. “With the announced squeeze-out at LOTTO24, we are also putting ZEAL in the best possible position for the future and are leveraging further efficiency potential.”
Revenue in core business grows by 28 percent
ZEAL’s significant revenue growth in the first quarter is primarily due to the strong performance of the lottery business. Billings increased by 22% to € 246.3 million, while revenue from lotteries rose by as much as 28% to € 32.0 million (2023: € 24.9 million). The growth in billings is primarily due to the 21% increase in the average number of active customers per month (MAU). ZEAL was also able to improve the gross margin in the lottery business to 13.0% (2023: 12.4%) thanks to a change in the product mix and further margin optimizations. Excluding the one-off effect from the distribution of a major prize in the company’s charity lottery Deutsche Traumhauslotterie, the gross margin would have been as high as 13.3%.
Games business with significant revenue growth compared to Q4 2023
The games business, which was launched last year, also developed very positively in the first three months of the year. Compared to the fourth quarter of last year, ZEAL was able to increase revenue from games by around 20% from € 1.8 million to € 2.2 million. At 7.0%, the gross margin was stable compared to the previous quarters.
ZEAL was also able to further expand its games portfolio at the end of the quarter. The subsidiary LOTTO24 AG received permission to offer a further 64 games.
Stable result thanks to efficient expansion of future earnings base
ZEAL invested heavily in future growth in the past quarter, acquiring more than twice as many new customers (320 thousand) as in the same period of the previous year (2023: 143 thousand). The company achieved this customer growth much more efficiently than in the same period of the previous year. At € 33.04, the acquisition costs per registered new customer (cost per lead, CPL) were noticeably lower than in the previous year (2023: € 36.77). Due to the company’s strategic decision to use the exceptionally good jackpot situation in January 2024 for efficient new customer growth, marketing expenses of € 13.4 million were 91% higher than in the same period of the previous year (2023: € 7.0 million). As a result, other operating expenses rose to € 21.0 million (2023: € 12.5 million). As a result of the increased number of new customers and the growth of the games business, the direct costs of business operations also rose to € 4.0 million (2023: € 2.7 million).
At € 9.4 million, EBITDA was slightly higher than in the first quarter of the previous year (2023: € 9.3 million). At € 7.5 million, EBIT was 6% higher than in the same period of the previous year (2023: € 7.1 million) due to lower depreciation and amortization recognized in profit or loss. Net income for the period rose to € 21.1 million (2023: € 4.7 million) due to the first-time recognition of expected tax benefits from the utilization of existing tax loss carryforwards in connection with the LOTTO24 squeeze-out.
Due to the good results of the first quarter of 2024, ZEAL confirms the forecast published on March 20, 2024.
The post ZEAL starts with 35 percent revenue growth into the year 2024 appeared first on European Gaming Industry News.
Central Europe
Relax Gaming celebrates twenty-one Mega Jackpot winners as Hungarian player hits Dream Drop prize
Relax Gaming, the iGaming aggregator and supplier of unique content, has announced its 21st Dream Drop Mega Jackpot winner after a Hungarian player landed a cool €2.9 million prize from a €0.30 spin.
The incredible win occurred at Vegas.hu, the first legally operating online casino in Hungary. The jackpot was hit playing Money Train Origins Dream Drop, a high-octane release that blends the gritty aesthetic of the original Money Train with the legendary Dream Drop jackpot.
Released in June 2023, Money Train Origins Dream Drop is part of Relax Gaming’s growing portfolio of jackpot titles. With engaging features and the proven popularity of the Money Train franchise, the title has delivered on every front, offering a compelling experience for both new and returning players.
This latest win marks the 21st time the top prize has been triggered since the jackpot launched, reaffirming Relax Gaming’s position as a leader in jackpot innovation. It also comes hot on the heels of the supplier’s recent upgrade to the product, with fast-paced Daily Jackpots added to the Dream Drop network earlier this month.
Martin Stålros, CEO of Relax Gaming, said: “This latest Mega Jackpot hit is another brilliant moment for Relax Gaming and for one very lucky player.
“We’re especially pleased to see the jackpot drop at Vegas.hu, a key partner and a trailblazer in regulated online gaming in Hungary. With the addition of Daily Jackpots to our network, Dream Drop continues to lead the way in offering the most exciting jackpot experience in the industry.”
Laszlo Siba, Online Casino Director at Vegas.hu, added: “We are absolutely thrilled to have hosted Hungary’s first Dream Drop Mega Jackpot win here at Vegas.hu. Delivering standout moments like this is exactly what we strive for. Long may Relax Gaming’s innovative content continue to engage and excite our players, especially the Dream Drop series!”
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London-based video virtuals and instant win games specialist Highlight Games Limited today announces that its flagship products are now live online in Poland with the Fortuna Entertainment Group.
Highlight’s flagship soccer products which feature genuine archive footage from some of the biggest leagues and teams in football are now available to Fortuna’s online customers. Iterations of the product include Italian Football featuring Serie A, Spanish Football featuring LaLiga and English Football featuring English Premier League teams. Additional content featuring ATP Tennis, MotoGP and other premier associations will be launched in the near future.
Steven Holmes, CEO, Highlight Games said: ‘I’m delighted to announce that Highlight Games’ premium video virtuals are now live online in Poland with our valued partners at Fortuna. It’s always an exciting time as we introduce our award-winning products to new customers, and we look forward to bringing additional content to Fortuna’s channels in the future.’
Erik Klems, Group RNG Product Manager, Fortuna Entertainment Group added: ‘Highlight Games’ exclusive soccer games featuring archive video footage are an incredibly exciting addition to our virtual sports offering and we can’t wait for our online customers to enjoy them. Highlight Games’ reputation as an innovator in the virtual sports market is undeniable, and we’re delighted to be working with them to bring their content to Poland.’
The post HIGHLIGHT GAMES LIVE ONLINE WITH FORTUNA appeared first on European Gaming Industry News.
Euro Games Technology will partner with the Casino Operations Summit for another year in a row. The Bulgarian gaming equipment manufacturer will be a gold sponsor of this year’s event, taking place from May 13 to 15 in Nova Gorica, Slovenia.
The conference is tailored to European multi-channel casino operators and will traditionally bring together keynote speakers who will elaborate on the latest topics in the industry. This year’s main themes will focus on how land-based casinos can successfully address the challenges of the modern world, remaininng relevant and attractive to players, and navigate the ever-growing importance of Casino Online Systems and Casino Management Systems.
In addition, attendees will be able to enjoy a selection of EGT’s newest high-potential products. Among the highlights will be the S 32-32 ST cabinet, which is part of the latest Supreme slot series. Following the contemporary design trends with its 2 high-resolution 32-inch UHD 4K monitors and a frameless UHD 4K display, this model will offer visitors an engaging gaming experience thanks to its numerous ergonomic features. It will also present the Supreme Red Selection and Supreme Bonus Prize Bonus Buy Selection multigames. The mixes offer a rich variety of well-known and brand-new slot titles from the company’s portfolio, allowing everyone to find their preferred type of game.
The slot display will be complemented by the jackpot top performer Bell Link with the multigame Bell Link 2, Bell Link Boost, as well as the popular cabinet G 50 J2 ST.
The post EGT will be a gold sponsor of Casino Operations Summit 2025 appeared first on European Gaming Industry News.
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