ZEAL Network Q1 Revenue Rises 6% Despite Lower EBITDA

ZEAL Network Reports Mixed Q1 2024 Results

ZEAL Network SE announced its first-quarter 2024 financial results, showing a 6% year-over-year revenue increase to €54.3 million and a 1% rise in billings to €268 million, even with weak lottery jackpot performance.

Performance Overview

The German lottery operator's performance was supported by a 5% expansion in its active customer base to 1.575 million users, driven by increased marketing spending. Revenue was nearly in line with analyst estimates of €54.6 million. The company also improved its lottery business take rate to 17.8%, up from 17.1% in the same quarter last year.

Financial Impact and Outlook

Despite revenue growth, first-quarter EBITDA declined by 13% to €15.5 million, reflecting a lower margin of approximately 29%. However, this figure surpassed consensus expectations of €15.3 million. The company's Games segment showed strong performance, with revenue growing 14% to €3.9 million.

Summary

ZEAL Network confirmed its 2024 guidance, projecting revenue between €250 million and €260 million and EBITDA between €70 million and €75 million. The company maintains a positive long-term outlook, expecting mid-teens to double-digit revenue growth and an EBITDA margin above 30% in the coming years.

FAQ

Q: What were ZEAL Network's key Q1 2024 financial results?
A: Revenue grew 6% to €54.3 million, while EBITDA fell 13% to €15.5 million.

Q: How did customer numbers change for ZEAL Network?
A: The active customer base grew by 5% year-over-year to 1.575 million.

Q: What is ZEAL Network's financial forecast for 2024?
A: The company confirmed its guidance for revenue of €250-€260 million and EBITDA of €70-€75 million.

Source: Investing.com