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International lottery operator Zeal Network SE has reported a 10.4% year-on-year revenue rise to €116.1m for full-year 2023.

EBITDA reached a new five-year high of €32.9m, up from €31.7m in 2022, despite “a weak jackpot environment,” Zeal said. 

Within the lottery sector, Zeal witnessed a substantial rise in billings, climbing 11% year-on-year to €843.3m in 2023.

Zeal, initially founded as Tipp24 in Germany in 1999, operates LOTTO24 and Tipp24.

In addition, in June 2023, Zeal successfully launched its online games offering, thereby strengthening the basis for further business growth.

“In 2023, we further expanded our position as market leader. We are benefiting from our strong brands. LOTTO24, for example, has developed into a winner’s factory, producing more record winners last year than any other lottery provider in Germany,” said Zeal CEO Helmut Becker (pictured). 

“Our strong top and bottom-line results and our market share, which has grown to 41.4%, show that we are on the right track. We are therefore looking to the future with determination and confidence,” he added.

Online games division 

Zeal’s new online games offering achieved billings of € 41.6m in its first year, while revenue generated with online games amounted to €3m and EBITDA to €1.4m.

“The strong growth in our billings and revenue shows that we inspire our customers with our attractive and innovative product range,” Zeal CFO Sebastian Bielski stated. 

“At the same time, our successful start in the online games business clearly shows that we are in a position to successfully develop new business areas.”

2024 outlook

Looking ahead to 2024, ZEAL aims to maintain its market leadership in online lottery products, accelerate growth in its newly launched games offering, and introduce new products in the charity lottery segment. 

The company anticipates revenue for 2024 to be within the range of €140m to €150m, assuming average jackpot development, with expected EBITDA between €38m and €42m.

Moreover, Zeal intends to acquire full ownership of LOTTO24, having successfully acquired over 95% of its shares. 

Zeal plans to conduct a squeeze-out of the remaining minority shareholders of Lotto24, with the cash compensation amount to be determined at a later date.

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