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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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GR8 Tech

GR8 Tech Expands in LatAm with Jugabet Partnership

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GR8 Tech, a leading provider of Sportsbook and iGaming platform, continues its expansion in the Latin American market through a new partnership with Jugabet in Peru.

GR8 Tech provides Jugabet with its comprehensive Sportsbook and iGaming platform, fully customized to suit the Peruvian market. This customization spans aspects like a bespoke frontend, local content, language options, and payment methods. GR8 Tech’s in-house CRM solution with a proprietary bonus engine also contributes to the platform’s success, allowing the operator to tailor bonuses and build campaigns designed to engage local players, ensuring a seamless and immersive user experience.

GR8 Tech stood out to us as a technological partner because of their remarkable flexibility and deep understanding of the Peruvian market,” commented Cristhian Gómez, Head of LATAM at Jugabet. “Their modular platform architecture and easy API-based integrations allow us to create a truly unique offering for our players, delivering maximum engagement and achieving success in this competitive market.”

Yevhen Krazhan, GR8 Tech’s CBDO, also expressed enthusiasm about the partnership. “We are excited to collaborate with Jugabet and bring our state-of-the-art technology to the Peruvian market. We are confident in our ability to deliver outstanding results and look forward to helping Jugabet expand into other Latin American countries.

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Following GR8 Tech’s recent acquisition of Peru’s B2B gaming supplier license, the partnership with Jugabet is a significant milestone in GR8 Tech’s strategic growth in LatAm, adding to the over 45 successful cases in GR8 Tech’s client portfolio globally. Connect with GR8 Tech at the upcoming SBC Summit Lisbon to learn more about those cases and how the company can assist your expansion goals in the iGaming markets worldwide.

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AI

British Columbia Lottery Corporation and Future Anthem partner to establish Artificial Intelligence and Data Innovation Hub in Vancouver

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Partnership will create dedicated specialist team to develop and deploy AI to improve player experiences across gaming products and channels.

BCLC has partnered with Future Anthem, a UK-based gambling data science specialist, on the creation of an Artificial Intelligence (AI) and Data Innovation Hub (the “Hub”), to be located at BCLC’s Vancouver office.

The Hub will focus on the development of AI, data capabilities and programs designed to improve the player experience across all BCLC gambling platforms, including lottery, gaming, and sports. It will employ a team of data and product professionals, with access to Future Anthem’s Data Science platform.

“BCLC is excited to be partnering with Future Anthem to create the first AI innovation hub in B.C. focused on the gambling industry,” says Mark Goldberg, BCLC’s Chief Information Officer. “We know that the key components of the Hub will be its data driven research and software product development to support player engagement and experience, safer play and improved game design – core BCLC business areas.”

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Managed in partnership through a joint Steering Committee that includes senior representatives from both BCLC and Future Anthem, the Hub will create and cultivate highly specialized, Vancouver-based AI technology jobs utilising Future Anthem’s strong experience in building teams focused on AI research and development, complemented by a small team of BCLC employees with skills and experience in this area.

“This dynamic partnership combines our expertise, reach, and technologies and allows us to harness AI for good – to bring true and measurable benefits to players in a responsible, sustainable, and enjoyable manner,” says Leigh Nissim, CEO and Founder of Future Anthem. “With access to more data across all verticals and channels to build amazing machine learning models and AI applications, I am confident this collaboration will quickly deliver benefits to BCLC and its players to reinforce its lead position within lotteries globally.”

As well as recruiting the team in Vancouver, Future Anthem will deploy its market-leading real time AI platform locally to employ best practices for AI product development and governance within the Hub, which includes protocols to ensure transparency of AI use, data security, and management of AI models and their player impact. These models are designed to use anonymised data that is stored in Canada.

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Press Releases

Become MEGA with Soft2Bet at SBC Lisbon

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Soft2Bet is delighted to announce that it will be hosting an exclusive workshop on Motivational Engineering Gaming Application (MEGA), its revolutionary gamification solution during the SBC Summit Lisbon 2024!

Soft2Bet, the iGaming industry’s leading provider of turnkey solutions, will once again be driving thought leadership at the SBC Summit Lisbon with the company hosting a must-attend workshop on Motivational Engineering Gaming Application (MEGA), the leading gamification solution in iGaming.

Senior company leaders will also be taking part in panel discussions on key business trends to look out for in the future and how iGaming can maintain sustainable commercial growth whilst balancing regulatory compliance and player protection.

BECOME MEGA WORKSHOP – SBC SUMMIT LISBON 2024 

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Senior Sales Manager, Ben Scobie-Trumper, will be hosting an exclusive workshop on Motivational Engineering Gaming Application (MEGA), Soft2Bet’s revolutionary gamification solution that increases engagement and revenues for our partners. Product Manager, Olga Melnyk, will be on site for deep-dives regarding MEGA integration and back-office. Registrations are open to all delegates until 20 September.

What: Soft2Bet MEGA Workshop 

Where: SBC Summit Lisbon 2024 – Soft2Bet Stand #C160

When: 25 September 2024, 14.30PM

Attendees are advised to arrive 10 minutes before the start of the presentation, which will last 30-40 minutes and will be followed by a Q&A session that will provide an opportunity to get into the details of MEGA and why it is the standout gamification solution for iGaming operators. The sales team will be on site for any questions or additional insights. There will also be cocktails from 15.30PM to close the event, don’t miss it!

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SOFT2BET PANEL SPEAKERS – SBC SUMMIT LISBON 2024

Leaders of Tomorrow: the talent, tech and trends of the next decade

Soft2Bet’s Chief Business Development Officer Martin Collins will be taking part in a panel on the key talent, tech and trends iGaming companies should look out for in the next decade in order to capture audiences, market share and growth.

Where: SBC Summit Lisbon – Conference Room 1

When: 24 September 2024, 12.45PM

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Exploring the Balancing Act: Regulation vs. Player Protection in New Player Acquisition

Soft2Bet General Counsel David Yatom Hay will debate how iGaming companies can best  navigate complex regulatory landscapes and find the balance between compliance, customer acquisition, player protection and driving sustainable commercial growth.

Where: SBC Summit Lisbon – Conference Room 2
When: 24 September 2024, 15.30 PM

The post Become MEGA with Soft2Bet at SBC Lisbon appeared first on European Gaming Industry News.

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