Zeal H1 revenues up 63% but profits slide
German firm plans to ‘disrupt the lottery world’ and sees total operating performance reach €65m
Lottery betting company Zeal this morning reported a 63% year-on-year increase in revenue for H1 2017 but a dip in profits thanks to marketing and personnel costs.
Total revenue hit €62.4m while EBIT decreased from €10.3m last year to €7.9m in H1, which the firm attributed to investments in marketing activities, higher personnel costs and higher hedging expenses.
Zeal CEO Dr Helmut Becker said: “In the first half of the year, we made good progress and stayed fully in line with our internationalisation strategy.
“Later this year, we expect to receive a licence to operate in the Czech Republic. Our innovative lottery products and long-standing experience help us to make successful new market entries.
“At the same time, we further push the expansion of our B2C product portfolio and make strategic investments, including our stake in Omaze.”
In May 2017, Zeal invested €1.9m in Los Angeles based start-up Omaze Inc, which offers an international non-licenced social prize competition aimed at the millennial generation.
In H2, Zeal is applying for a lottery licence in Czech Republic and plans to roll out a social lottery in the Netherlands under its Lottovate licence.
The lottery firm says it intends to capitalise on the relatively low internet penetration of the lottery industry and take advantage of opportunities arising from changes to regulation.