ZEAL reveals profit growth despite revenue drop
ZEAL Networks, the online lottery firm that rebranded from Tipp24 last year, has revealed that despite having suffered a year-on-year drop in revenue during the first nine months of this year, it was able to achieve a “robust” profit increase.
Revenue at the end of the third quarter stood at €51.9 million ($55.2 million), a much lower figure than the €105.4 million posted at the same point last year.
ZEAL cited the impact of high prize pay-outs as the main reason behind this drop in revenue.
Total operating performance in the nine-month period fell from €108.8 million to €91.9 million, although the company did note an increase in earnings before interest and tax, which jumped from €11.1 million to €20.7 million.
Elsewhere, net profit was up from €1.1 million to €8.2 million, while earnings per share increased from just €0.12 in the first nine months of last year to €0.97 in the same period this year.
Looking ahead to the final quarter of 2015, ZEAL said it expects total operating performance to come in at between €120 and €130 million, with earnings before interest and tax amounting to between €20 and €30 million.
Helmut Becker, chief executive of ZEAL, added: “ZEAL has achieved a robust profit increase in the first nine months of 2015, despite exceptionally high prize pay-outs.
“We are also gaining traction with new gaming product initiatives launched earlier this year that are driving an increased revenue per customer.”
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