ZEAL Network Reports Increased Billings Despite Lower Lottery Payouts in First Quarter

The German online lottery brokerage firm, ZEAL Network, disclosed a significant increase in its transaction volume during the initial quarter of the year, according to Investing.com. This growth occurred despite a period characterized by comparatively modest lottery jackpots. The company reported that billings, which represent the total value of transactions processed through its platforms, surged by 5% year-over-year, reaching €180.2 million. This figure marks a substantial uplift from the €171.7 million recorded in the same period last year. The number of new registered customers also saw a healthy increase, with 126,000 individuals joining the platform, demonstrating an 11% rise compared to the prior year. ZEAL Network’s revenue also experienced an upward trend, climbing 4% to €23.6 million, up from €22.7 million previously. The normalized EBITDA, a measure of operational profitability, showed a robust 15% increase, settling at €7.7 million. This growth is particularly noteworthy given the less favorable jackpot environment. Jonas Mattsson, the Chief Financial Officer for ZEAL Network, highlighted the company's strong start to the year. He emphasized that the positive momentum from recent initiatives has continued into the current fiscal period. Mattsson also expressed confidence in achieving the company's full-year financial objectives. Looking ahead, ZEAL Network has reaffirmed its financial guidance for the entire year. The company anticipates billings to fall within the range of €780 million to €810 million. Similarly, revenue projections are set between €110 million and €115 million. The outlook for normalized EBITDA remains optimistic, with expectations ranging from €30 million to €34 million for the full fiscal year. These positive results underscore the company's ability to attract and retain customers, even when the allure of exceptionally large lottery prizes is reduced. The consistent growth in key financial indicators suggests a resilient business model that can thrive under varying market conditions.