Revenue for the 12 months to 31 December 2021 was €86.8m, slightly lower than the previous financial year. The majority of the revenue, amounting to €78.5m, was generated from the core German business. The remaining €4.9m came from other activities.
Total group billings, which include all customer stakes, increased by 0.6% year-on-year to €656.5m. Despite “weak” jackpots compared to the previous year, Zeal was able to achieve this growth.
In 2021, Zeal achieved several significant milestones. This includes the offer to purchase all remaining shares in Lotto24, allowing Zeal to take full ownership of the online lottery broker it spun off in 2012. After settlement, Zeal now holds approximately 94.9% of the total share capital of Lotto24.
There were also changes in Zeal’s senior management team, with the appointment of Paul Dingwitz as the new Chief Technology Officer and Sönke Martens as the Chief Operations Officer.
The company was able to achieve cost savings, particularly in marketing expenses for certain lottery games due to weaker jackpots. As a result, total operating costs decreased by 23.0%, including reductions in personnel expenses, marketing spend, and direct and indirect operating expenses.
Adjusted EBITDA increased by 117.6% to €27.7m, leading to a significant jump in earnings before interest and tax to €19.0m. Zeal reported a pre-tax profit of €16.7m after financial expenses and share loss from associates. With an income tax payment of €5.3m, the company ended the year with a net profit of €11.4m, a 44.5% increase from the previous year.
Looking ahead to 2022, Zeal expects revenue to reach at least €105.0m, representing a 21.0% increase from 2021. Adjusted EBITDA is also expected to increase by at least 6.0% to €30.0m. Zeal’s CEO, Helmut Becker, expressed confidence in the company’s future growth prospects.
