Zeal Network eyes international growth as Q1 revenues plummet
Lottery firm looks to build on expansion into Norway and Holland after a 37% fall in revenues during the quarter
Zeal Network today said it would look to increase its international footprint to boost growth after the lottery operator reported a 37% fall in revenue in Q1 2017.
The London-based firm recorded statutory revenue of €23.6m for the three-month period compared to €37.6m posted last year, largely the result of a €15m prize pay-out in March.
However, consolidated ‘normalised’ revenue decreased 1% year-on-year to €35.1m.
Despite the big win, Zeal Network was able to deliver a positive EBIT for the first quarter of €0.2m, although this was significantly down from the €14.2m the company recorded in Q1 2016.
Meanwhile, billings rose by 3% year-on-year to €68.4m and average monthly active users (MAU) increased 10% to 392.9k in Q1 2017, compared to 356.6k in the comparative period.
Zeal Network said the lottery firm would continue to look at increasing its presence in additional international markets following recent expansions into Norway and the Netherlands.
Helmut Becker, CEO of Zeal, said: “The launch of our online lottery betting product in Ireland as well as the new licences in Norway and the Netherlands prove that we are successfully expanding our business with locally tailored strategies.
“We continue to increase our footprint and bring our innovative and modern lottery products to an increasing number of customers.”
Zeal Network’s share price stood at €27.83 on the Frankfurt Stock Exchange at the time of writing.