German online lottery provider Zeal Network SE, has lauded a “successful” first quarter of the financial year as it posted significant increases in revenue and net profits.
The company’s total revenue grew by 11% to €25.1m in Q1 of FY2022 (2021: €22.6m) while its billings also increased by 11% to €181.2m (2021: €163.3m).
Consequently, Zeal’s EBITDA increased “significantly” to €8.9m, up from €4.6m in Q1 of 2021, further assisted by a decrease in personnel expenses to €4.1m (2021: €5.2m) and operating expenses to €8.9m (2021: €4.6m).
Net profit also increased considerably to €5m, twice the figure for the same period in 2021 (€2.5m).
Zeal also explained that the rise in acquisition costs per newly registered customer of €38.09 (2021: €33.48) was mainly a consequence of a special promotion for the charity lottery freiheit+.
Jonas Mattsson, CFO of Zeal, commented: “We have made a good start to 2022 and were able to increase revenue and profitability once again.
“This gives us momentum to invest in further growth this year.”
Looking forward, Zeal has outlined its plans to introduce new products, including ‘online games’ based on the applied-for licence for virtual slot games.
ZEAL expects a billings volume of at least €750m, revenues of at least €105m and an EBITDA of at least €30m for the German segment, while there are plans to invest significantly more in new customer acquisition compared to the previous year.