DGAP-News: ZEAL Network SE / Key word(s): Quarterly / Interim
Statement/Quarter Results
ZEAL Network SE: ZEAL reports a solid performance for Q1 2016
13.05.2016 / 07:30
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Press release
ZEAL reports a solid performance for Q1 2016
- Total operating performance rose by 7% to EUR 38.6 million (2015: EUR
36.1 million)
- EBIT in the period amounted to EUR 14.2 million (2015: EUR 14.1
million)
- ZEAL acquired the remaining shares of Geonomics Global Games Limited
- Pay out of the first interim dividend of 2016 amounted to EUR 0.70 per
share
(London, 13 May 2016) ZEAL Group continued to build on its strong
performance in 2015 with a solid first quarter in 2016. The Group expects
continued growth in its core customer facing business. The strategy for the
business-to-business offering remains in line with plan.
In March 2016, ZEAL completed the acquisition of the non-ZEAL held
interests in Geonomics Global Games Limited (GGGL) and its joint venture,
Geo24 UK Limited (Geo24). The technical capabilities and expertise of the
personnel employed by GGGL and Geo24 fit well with ZEAL Group's wider
growth aspirations.
Consolidated revenue and total operating performance during Q1 2016 rose to
EUR 37.6 million (Q1 2015: EUR 34.9 million) and EUR 38.6 million (Q1 2015:
EUR 36.1 million) respectively. These increases were largely driven by the
successful rollout of the Group's instant win games since February 2015,
increases in the level of activity of its existing customer base and
registration of new users. Consolidated "normalised" revenue* in the first
three months of 2016 increased by 11% to EUR 35.6 million (Q1 2015: EUR
32.1 million).
EBIT in Q1 2016 amounted to EUR 14.2 million and exceeded that generated in
the same period in 2015 (Q1 2015: EUR 14.1 million). The increase in total
operating performance was offset by a non-recurring charge of EUR 1.3
million attributable to the acquisition of GGGL and Geo24, period on period
adverse exchange rate movements of EUR 1.8 million partly compensated by
savings of EUR 0.7 million in other operating costs compared to the same
period in the prior year.
Dr Helmut Becker, Chief Executive Officer of ZEAL: "Our first quarter
results underline the strength of our business model; evidenced
particularly by the sustained level of growth shown in all areas of our
consumer facing business. We continue to lay foundations for future
strategic development through investments in marketing, product
improvements and in our business-to-business offering.
Earnings per share in the first three months of 2016 contracted slightly
year on year from EUR 1.13 to EUR 1.04.
ZEAL is pleased with the core underlying profitability of the Group and
confident that adherence to the strategic objectives set out in the 2015
Annual Report will result in sustained EBIT growth for the rest of the
year.
In accordance with its dividend policy, ZEAL Network paid out the first
interim dividend of 2016 amounting to EUR 0.70 per share at the end of Q1
2016. The Group intends to pay three more instalments of EUR 0.70 per share
in 2016 and continue quarterly payments of at least that amount in 2017 and
future years. The dividend policy is subject to periodic review and
possible amendments depending on future earnings and financial position.
Outlook for 2016 confirmed
The strategic outlook remains unchanged with attractive growth
opportunities in ZEAL's target markets. The Group has made progress towards
its strategic goals. The new instant win games attract new target groups
who demand a more exciting gaming experience. There is high potential in
this growing market. The Group remains well positioned to capitalise on
opportunities arising from changes to regulatory conditions and relatively
low internet penetration of the lottery industry.
Zeal expects full year total operating performance to be EUR 140-150
million and full year EBIT to be EUR 40-50 million.
Selected Financials:
<pre>
Q1 2016 Q1 2015
Revenue EUR '000 37,574 34,902
Total operating EUR '000 38,634 36,063
performance
EBIT EUR '000 14,244 14,097
Net profit EUR '000 8,695 9,459
Earnings/share EUR 1.04 1.13
</pre>
*Consolidated "normalised" revenue represents gross revenue generated
adjusted for differences between actual and expected prize pay-outs.
Further explanation is included on page 6 of the Q1 2016 report.
***
Press contact:
ZEAL Network SE
Press office
Tel.: +44 (0)20 3739-7000
E-Mail: media@zeal-network.co.uk
Internet: www.zeal-network.co.uk
About ZEAL Network SE:
ZEAL is a holding company specialised in the area of online lottery. We
offer consumer facing lottery-based games as well as business to business
solutions. Our vision is to create a better world of lottery.
ZEAL Network SE is a London based company, founded in Germany in 1999 as
Tipp24 SE. In November 2014, the company was renamed ZEAL Network SE. Its
shares are listed on the Prime Standard of the Frankfurt Stock Exchange and
are included in the SDAX index. Since its incorporation, ZEAL has generated
stakes of 2.5 billion euros and thus contributed over 650 million euros in
taxes and duties.
ZEAL holds equity interests in businesses running under the following
brands: Lottovate offers digital services to licensed lottery operators
around the world (www.lottovate.com). Lotto Network enables private
business partners to host their own branded lotto product
(www.lottonetwork.com). Ventura24 is a lottery ticket broker in Spain
(www.ventura24.es). Tipp24 offers consumer facing secondary lottery
products (www.tipp24.com).
---------------------------------------------------------------------------
13.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: ZEAL Network SE
5th Floor One New Change
EC4M 9AF London
United Kingdom
Phone: +44 (0)20 3739-7000
Fax: +44 (0)20 3739-7099
E-mail: office@zeal-network.co.uk
Internet: www.zeal-network.co.uk
ISIN: GB00BHD66J44
WKN: TPP024
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of News DGAP News Service
---------------------------------------------------------------------------
463409 13.05.2016
DGAP-News: ZEAL Network SE: ZEAL reports a solid performance for Q1 2016
| Source: EQS Group AG