Central Europe

ZEAL starts with 35 percent revenue growth into the year 2024

Published

3 months ago

May 8, 2024

Reading Time: 3 minutes

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.

Central Europe

MightyTips announces collaboration agreement with Merkur Bets

Published

3 days ago

July 24, 2024

George Miller

MightyTips announces collaboration agreement with Merkur Bets

Reading Time: 2 minutes

MightyTips has announced a brand-new partnership with Merkur Bets targeting German-speaking bettors across Germany.

The move aims to expand the customer base for Merkur Bets, which is striving to build its position as a leading player in several Central European countries.

The exclusive partnership with the MightyTips platform – a tips and predictions hub – is hoped to boost acquisition rates in the region ahead of what is likely to be a busy conclusion to the summer.

The Olympics, the new Bundesliga and Premier League season, and other major sporting events are to take centre stage, with more people than ever engaging with sports betting.

After ten years of operating as XTiP, a recent rebranding means it is now known as Merkur Bets. The sports betting experience has been modernised, as the website now provides an updated design, faster loading times, and enhanced user-friendly navigation.

The change was announced by operators Merkur Group earlier in the year and included a fresh logo and redesigned aesthetics across both its online and physical outlets.

Stefan Bruns, CEO of Online Gambling and Sports Betting at Merkur Group, cited it as a new beginning for the company: “The renaming of XTiP to Merkur Bets is not only a new beginning, it also offers the opportunity to establish a completely renewed approach to sports betting within the Merkur Group.”

Since 2013, Merkur Group has been one of the leading operators in Germany. Its origins stretch back to 1957, when it was founded as a family-owned business by Paul Gauselmann.

Eugene Ravdin, MightyTips Communications and Marketing Manager said: “We are delighted to collaborate with Merkur Bets. They are one of the biggest betting companies in Europe and our services can further solidify their reputation as a leading player in this sector.”

Martin Collins, Head of Affiliates at Merkur Group added: “We are very pleased to continue our work with the MightyTips team. Both sides bring great knowledge to the table for our core markets, and we look forward to a long-term beneficial partnership.”

Central Europe

SYNOT Successfully Entered the Swiss Market with Casino Products

Published

1 week ago

July 19, 2024

Niji Narayan

Reading Time: 2 minutes

SYNOT, a leading provider of gaming systems and casino equipment, has entered the Swiss market with the installation of its products at Casino Admiral Mendrisio.

The first installation included a set of Eclipse FL-32 cabinets with the latest version of the Firebird Red gaming system. This version offers a range of original games including 6 Hold & Respin titles and over 40 classic games. Shortly after the successful first installation, the company also launched Firebird slots at the St. Gallen Casino.

“The Swiss market is one of the most lucrative casino markets in Europe and therefore we consider this launch a great success. The market is highly regulated and competitive. In addition, operating gaming equipment in this country requires GLI-11 certification, including the appropriate certification transfer for the Swiss market. Of course, our company meets all these requirements,” Miroslav Valenta Jr., Sales Director of the SYNOT Group, said.

SYNOT already operates online slots in the Swiss market in cooperation with several operators. Now these popular games will also be available in land-based casinos, specifically in the Firebird Red gaming system. With this step, SYNOT continues its omni-channel strategy, which includes both online and land-based sectors.

“We have high ambitions. Our goal is to gradually bring our products to all casinos in Switzerland. We are seeing an active interest in our products, which we are very pleased about. We also have strong support from our distributor. We are cooperating with our exclusive distributor for Germany and Switzerland – the company E-Systems,” added Miroslav Valenta Jr.

“After many positive feedbacks from German casinos throughout the past years, it soon became our combined goal to also enter the competitive Swiss market, which we have successfully achieved now! Many thanks go to our long-term partner Casinò Admiral Mendrisio, who acted quickly and therefore was able to celebrate the debut of SYNOT’s great cabinets & games in all of Switzerland. We’re looking forward to many more launches in other Swiss casinos in the near future and we’re confident that SYNOT will become an inherent part of the Swiss market product mix,” Thomas Steuer, Sales Director of E-Systems, said.

Central Europe

OKTO.CASH expands in Germany with bet-at-home go-live

Published

1 week ago

July 17, 2024

George Miller

OKTO.CASH expands in Germany with bet-at-home go-live

Reading Time: 2 minutes

OKTO announced the launch of its advanced cash-to-digital payment solution, OKTO.CASH with bet-at-home, a renowned and established operator in the German iGaming market. This collaboration marks a significant milestone for OKTO, expanding its footprint in Germany and further solidifying its reputation as an innovator in cash-to-digital solutions for iGaming enthusiasts.

OKTO.CASH offers bet-at-home users a hassle-free way to consume iGaming services with cash in real-time. Leveraging OKTO‘s always growing network of over 14,000 points of sale across Germany, including well-known brands such as Aral, Deutsche Post, Esso, Kiosk, Lotto, Shell, and many others, users can effortlessly convert physical cash into digital currency. This streamlined process provides a secure, fast, and easy-to-use top-up method that caters to the preferences of the market.

Richard Greslehner, Head of Product at bet-at-home Internet Ltd commented: “This partnership underscores our dedication to delivering cutting-edge and convenient payment solutions for our customers. With OKTO.CASH, users can now seamlessly deposit their physical cash into their online bet-at-home accounts at their favourite everyday stores.”

“We are thrilled to partner with bet-at-Home for the launch of OKTO.CASH in Germany,” said Mikhail Ovsepyan, Head of Germany at OKTO. “This collaboration underlines our dedication to expanding our presence in the German market and delivering cutting-edge payment solutions that meet the needs of iGaming enthusiasts. We look forward to revolutionizing the gaming payment experience and providing unparalleled convenience and security to users.”

OKTO‘s expansion in the German region follows the approval of both OKTO.WALLET and OKTO.CASH by the German Gaming License Authority (GGL) last year. Embedded into the merchant’s app or website, OKTO.CASH provides users with the fastest and most direct method to upload cash online, eliminating the need for third-party apps. Users can select OKTO.CASH as their payment method, choose the deposit amount, and select the nearest location from over 14,000 points to top up their accounts safely and in real-time.