Zeal reports 19% Q1 revenue uptick despite weak jackpot environment
Hamburg-based lottery brokerage posts first quarter revenue of €22.6m as adjusted EBITDA hits €4.6m
Online lottery brokerage business Zeal Network has posted a 19% year-on-year increase in revenue to €22.6m (£19.6m) for Q1 2021.
The German firm said profitability had significantly improved, with a strong gross margin being achieved, as well as increased billings and revenue during the period.
Zeal’s Q1 billings rose by 17% to €163.3m from a prior Q1 2020 high of €140m, with Germany accounting for the entirety of billings generated during the quarter.
German business revenue increased by 24% annually to €21.1m in Q1, making up 93% of Zeal’s total revenue accrued during the period. The gross margin within the German segment of the business also increased to 12.7% for the period.
Company adjusted EBITDA jumped 64% in Q1 to €4.6m.
Zeal highlighted a “comparatively weak” German jackpot environment with lower-than-average jackpots on the LOTTO 6aus49 and Eurojackpot lotteries during the quarter.
Despite this, the firm gained 156,000 new registered customers over the period, with CPAs increasing to €33.48 in Q1 due to the lower-than-average jackpots.
Commensurate with an increase in CPAs, Q1 total marketing expenditure also increased, rising 7% to €7.1m.