Zeal revenue up by 6.3% in Q1

Zeal’s management board said that the first few months of the year had been successful, stating that the year had gotten off to a “positive start”.

“Following a successful 2022, during which we achieved ambitious growth targets and important milestones for the expansion of our business, 2023 has also got off to a positive start with some significant developments,” said the Zeal board.

During the quarter, Zeal co-founder Marc Peters stepped down from his role on the company’s supervisory board and Zeal’s ventures division invested in Circl Gaming, a games start-up.

The Zeal board said the investment in Circl Gaming had come at a “crucial” time in the market.

“The development of the gaming industry has been gathering pace in recent years and given rise to numerous visionary technical innovations,” the board noted. “This is crucial for our sector, as the future of the market is online.

“We are therefore looking forward to working together with Circl and sharing ideas for an even more diverse gaming and entertainment experience in the future.”

Zeal also noted the importance of its subsidiary, Lotto24 AG, receiving a slot licence from Gemeinsame Glücksspielbehörde der Länder (GGL). This occurred two weeks after the quarter ended.

First quarter results

The results benefitted from other operating income, which came to €200,000. However, expenses negatively affected the revenue.

Marketing expenses hit €7.0m, while direct operating expenses were recorded at €2.7m. Indirect operating expenses were also €2.7m. In total, this added up to €12.5m, an increase of 1.3%.

Personnel expenses for the quarter were €5.0m, a rise of 23.4% year-on-year.

Exchange rate differences accounted for €16,000.

This left the earnings before interest, tax, depreciation and amortisation (EBITDA) at €9.3m, a rise of 4.3%.

Following amortisation and depreciation costs at €2.1m, the total before earnings before interest and tax was €7.1m, a rise of 4.9%. A financial results cost of €293,000, plus share of loss from associates at €38,000, brought the pre-tax income to €6.7m.

After income tax of €2.4m, the net profit for the quarter totalled at €4.3m, a decrease of 12.6%.

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