Following a continued weak jackpot development in the third quarter, ZEAL reduces its 2021 guidance for billings and revenue but increases its EBITDA guidance due to cost savings

(Hamburg, 3 November 2021) According to preliminary calculations, ZEAL Network SE (lotto24.de, tipp24.de), the leading German online provider of lottery products, will not achieve the guidance published in March 2021 for the key figures billings and revenue due to the comparatively weak jackpot development of the 'LOTTO 6aus49' and Eurojackpot lotteries in the third quarter of 2021. However, thanks to consistent cost management and marketing expenses adjusted to the jackpot environment, the company continues to expect a significant year-on-year improvement in profitability. Once the jackpot development improves, the company intends to scale up its marketing expenses again.

In the first nine months of 2021, billings in the Germany segment rose by around 5 percent to EUR 493.2 million (2020: EUR 471.8 million) according to preliminary calculations. At EUR 65.1 million, the ZEAL Group's preliminary revenue was around 1 percent higher than in the previous year (2020: EUR 64.5 million). The adjusted EBITDA improved provisionally to around EUR 17.6 million in the first nine months of 2021 (2020: EUR 6.9 million).

Depending on the general conditions - in particular the further jackpot development - the company now expects for the financial year 2021 a transaction volume of around EUR 650 million (previously: at least EUR 700 million) in the Germany segment. In addition, the company now assumes that revenue will amount to around EUR 86 million (previously: at least EUR 95 million). ZEAL now expects an adjusted EBITDA of around EUR 25 million (previously: at least EUR 20 million).

ZEAL confirms its published dividend policy and its goal of proposing a dividend of EUR 1.00 per share to shareholders at the Annual General Meeting in 2022.

The quarterly statement as of 30 September 2021 will be published on 11 November 2021.

Explanations of the financial ratios used can be found in the Annual Report 2020 on the company's website (available at www.zealnetwork.de/investors/reports-presentations/).

Contact:
Frank Hoffmann
Investor Relations Manager
T: +49 (0)40 809036042
[email protected]