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ZEAL achieves double-digit growth in transaction volume and revenue in the first half of 2023

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ZEAL Network SE, the leading German online provider of lottery products, strongly increased its billings and revenues as well as the number of new customers in the first half of 2023. In the process, ZEAL took advantage of the high jackpot phases for successful marketing campaigns, which significantly expanded the customer base for further business growth. 

“The growth of our transaction volume in the second quarter of 2023 was near record-breaking and a whopping 18.8 percent higher than in the second quarter of 2022 – in this respect, we even recorded the second-best quarter in the company’s history,” said Jonas Mattsson, CFO of ZEAL. He also said that the continuous growth in new customers clearly shows that ZEAL has continued to make smart strategic investments in the first half of 2023 to further expand its market leadership. Mattsson continues, “Strategic growth in the e-commerce environment is becoming increasingly difficult, but with our attractive products and diverse marketing campaigns, we are confident that we will continue to impress in the market.”

Record growth and transaction volumes

The transaction volume of the ZEAL Group increased by 15 percent to 411.7 million euros in the first half of 2023 (2022: 358.3 million euros). At the same time, sales revenue grew by eleven percent to 54.8 million euros (2022: 49.4 million euros). At 12.5 percent, the company’s gross margin was close to the previous year’s figure (2022: 12.8 percent).

In the first six months of the year, ZEAL was able to take advantage of the attractive jackpot phases in January, March and June to acquire new customers and further expand its business volume. In June, for example, the popular Eurojackpot lottery hit the maximum jackpot of 120 million euros in two consecutive draws. During this phase, ZEAL set a new record with a transaction volume of 30.6 million euros in a single week. This development was supported by intensive marketing campaigns such as a cooperation with Kürsat Yildirim, known to the German public as a multiple lottery winner under the nickname “Chico”. 

Earnings base strengthened by strong new customer growth

In the first half of 2023, ZEAL acquired 349 thousand new customers, an increase of 20 percent year-on-year (2022: 292 thousand). ZEAL experienced increased acquisition costs per registered new customer (cost per lead, CPL) of 45.09 euros (2022: 37.61 euros), reflecting higher media costs in intensified competition for new customers. As a result, marketing expenses were 44 percent higher than in the previous year at 20.0 million euros (2022: 13.9 million euros). Other operating expenses consequently increased to 31.6 million euros (2022: 24.5 million euros). As a result of higher investments in new customer growth, EBITDA was down year-on-year at 13.8 million euros (2022: 16.4 million euros). EBIT amounted to 9.3 million euros (2022: 12.1 million euros) and net profit for the period to 5.6 million euros (2022: 9.4 million euros). “We pursue a focused marketing strategy and invest disproportionately in high-jackpot phases,” explains Jonas Mattsson. “The short-term decline in earnings at high jackpot phases is a perfectly normal development that will settle down again in the further course of the fiscal year.”

Continuous expansion of the games portfolio

In April, ZEAL received permission from the Joint Gambling Authority of the Federal States (GGL) to offer virtual slot machine games, so-called online games, and started offering them in its own web stores in June. Since then, the company has been working on the continuous expansion of its games offering. At the beginning of August, ZEAL added further games to the portfolio of LOTTO24’s web stores and plans to expand the range to up to 200 titles within the first year.

Forecast confirmed

For fiscal year 2023, ZEAL plans to expand its market leadership as an online provider of lottery products and continues to expect a billings volume in the range of 800 million euros to 830 million euros for the Germany segment – assuming an average jackpot development. In addition, ZEAL continues to expect revenues to be between 110 million euros and 120 million euros in fiscal year 2023. For EBITDA, ZEAL expects a range of 30 million to 35 million euros. The company again plans to invest significantly more in new customer acquisition than in the previous year and expects marketing expenses of between 34 million euros and 39 million euros.

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Pirate Multi Coins – Feature-rich New Title from Fantasma Games

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Slots players are taken on a swashbuckling adventure as they seek to unlock the Golden Chest in latest release from Fantasma Games

Pirate Multi Coins, a 6 reel, 5 position slot, is the latest title to hit the market from the Stockholm-based developer, Fantasma Games.

Golden Multi Coins are the key to unlocking big wins and features, with a random number of Coins appearing on each spin. Coins can hold either a monetary or multiplier value, and landing five on a spin awards all values shown.

In a break from standard slots, Pirate Multi Coins features no set paylines, with wins achieved when eight or more matching pay-symbols appear anywhere on the thirty-position matrix. Each win combines those symbols into another Coin, helping trigger the Multi Coin feature. The remaining spaces are filled by an Avalanche, which is Fantasma’s proprietary take on cascading reels.

Another air of suspense comes in the form of the Golden Chest at the top of the playing area. Any Coins landed during a spin which does not trigger the Multi Coin feature are added to the Golden Chest. The Golden Chest can trigger during any base-game spin where a coin is added to the chest, which rains more coins down upon the reels, guaranteeing a Multi Coin feature.

Finally, there is also a Free Spins feature, where landing four or more Scatter symbols awards fifteen free spins. Retriggers are also available during the feature, with three Scatters awarding five more free spins, and four Scatters awarding an additional fifteen spins!

Pirate Multi Coins comes with RTP options of 86%, 94.35% and 96.08%, sits at the medium range of the volatility scale and has a max win potential of 4999.x. It features a Scatter Boost option as well as a Bonus Buy for jurisdictions where this is applicable.

Fredrik Johansson, Founder and CEO of Fantasma Games, said: “In our first venture into the quintessential Pirate slot theme, Pirate Multi Coins brings a host of great features to all types of players.

“With multiple ways to trigger our various features as well as a medium level of volatility, we hope that it really appeals to every type of slots’ fan looking to find some buried treasure.

“Pirate Multi Coins takes to the high seas in thirty-four languages across our network of amazing operator partners on April 30th.”

 

 

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BetMGM is launched in the Netherlands, bringing an authentic Vegas experience to the Dutch market

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The golden Vegas offerings and entertainment of BetMGM is coming to the Netherlands, following a successful launch in the UK. BetMGM will offer a best-in-class Las Vegas experience to deliver a new golden era of online casino and sports betting in the Netherlands. Leveraging LeoVegas Group’s proprietary technology and platform, the launch marks a significant step in the brand’s international expansion.

BetMGM, the entertainment and sports brand known for its golden offerings and authentic Vegas experience, is launching in the Netherlands. The new brand is set to provide customers with exciting new product features, including large-scale jackpots, loyalty rewards, exclusive slots, as well as unique and compelling sports promotions. Utilising LeoVegas Group’s proprietary technology and platform, this expansion into the Dutch market represents the second European launch, succeeding a well-received rollout in the United Kingdom.

Gary Fritz, President of MGM Resorts International Interactive, said “We are thrilled to launch BetMGM in the Netherlands and build on BetMGM’s successful expansion into global markets. The Dutch market offers an exciting opportunity and will be an important part of our international expansion efforts and strategy to become a global gaming leader.”

Gustaf Hagman, Group CEO at LeoVegas Group, said “Our launch in the UK was tremendously successful, and we eagerly anticipate bringing the golden Vegas experience to the Netherlands. This launch in the Dutch market is an important step in our international expansion, but we have much more in store.

 

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New focus for safer gambling as Clarion confirms launch of Sustainable Gambling Zone

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The Consumer Protection Zone (CPZ), which since its launch at ICE 2018 has developed to become the highest profile feature on the ICE show floor has been re-branded to become the Sustainable Gambling Zone (SGZ).
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The Consumer Protection Zone (CPZ), which since its launch at ICE 2018 has developed to become the highest profile feature on the ICE show floor has been re-branded to become the Sustainable Gambling Zone (SGZ). 

The strategic decision has been taken following extensive stakeholder consultation and is set against the heightened importance placed on proactive customer interventions at earlier stages of the player journey.

The SGZ will be debuted at July’s iGB L!VE prior to its official launch at ICE 2025, the first edition of the industry’s most influential b2b gaming show to be held at its new home in Barcelona

Clarion Gaming’s Director of Industry Insight and Engagement, Ewa Bakun, who has seen the CPZ develop to become the key platform for the industry to advance its understanding and implementation of safer gambling measures and raise standards said: “I must stress that this is much more than just a cosmetic exercise. Instead, the Sustainable Gambling Zone, with its refreshed focus, will engage with the broader stakeholder group of operators who are focused on long-term sustainability, something which goes way beyond simply meeting the regulatory mandate.

“The overarching objective of the Sustainable Gambling Zone is to be at the vanguard of initiatives to help develop healthy play from the outset which includes the incorporation of safer gambling considerations from the very start rather than as a compliance requirement.

“While not yet standard across the whole of the industry, this more holistic approach underpins the safer gambling dynamic. Its goal is to create a more sustainable business in which players continue to enjoy their gambling entertainment experience with the small proportion who are at risk of developing problems pro-actively identified and assisted by operators.”

Clarion Gaming Managing Director, Stuart Hunter added: “The relocation to Barcelona will enable us to expand the ICE and iGB Affiliate offerings but also raise the bar in terms of what we already deliver on behalf of the international industry.

“The intended broader appeal of the Sustainable Gambling Zone dovetails with our relocation and will bring the SGZ closer geographically to continental Europe and closer culturally to the Latin American markets that we serve.

“Barcelona will open a new chapter for ICE/iGB Affiliate and their respective features, not least the Sustainable Gambling Zone.”

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