Net profit declines at online lottery firm Zeal Group

Online lottery company Zeal Group has posted a set of mediocre results for FY 2017, reporting:

* EBIT down at Euro 25.2 million (FY2016: Euro 38 million);

* Net profit down at Euro 17.2 million (FY2016: Euro 26 million);

* Sales flat at Euro 280.5 million;

* 31 percent increase in new registered customers; 411,000 new registered customers (FY 2016: 314,000);

* Strong fourth quarter billings of Euro 78.8 million; up 21 percent sequentially from third quarter;

* Earnings per share down at Euro 2.05 (FY 2016: Euro 3.09);

* Total Operating Performance up at Euro 141.2 million (FY 2016: Euro 139.6 million);

* Statutory revenue up at Euro 134.3 million (FY 2016: Euro 112.9 million);

* Higher hedging costs due to EuroMillions rule changes, and significant pay-outs that included a single Euro 15 million prize in the first quarter;

* The Group launched into three new international markets during the year, including two in the fourth quarter – Norway and the UK – which followed its second quarter launch in Ireland;

CEO Dr. Helmut Becker said: “The global regulatory environment continues to be challenging. However, we firmly believe the world’s lottery market is full of untapped potential. As a diverse and long-term focused business, we are well positioned to take advantage of those opportunities.”

For FY 2018 Zeal expects to deliver EBIT in the range of Euro 33 million – Euro 43 million, and Total Operating Performance of Euro150 million – Euro 160 million. The Group expects to pay a dividend of at least Euro 1.00 per share in 2018, subject to financial performance.

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