26.03.2020 - 07:36 Uhr

ZEAL publishes Annual Report 2019 and new dividend policy

ZEAL Network SE, DE000ZEAL241

and Tipp24 brands in fiscal year 2020. Aware that the comparative figures for the previous year are difficult to compare with those forecast for 2020 due to the Lotto24 takeover in May 2019 and the business model change from a secondary lottery to an online lottery broker in Germany in October 2019, ZEAL Group expects billings of between EUR 550 million and EUR 570 million. This includes for the first time the full year billings of Lotto24 and the discontinuation of the international products as part of the termination of the secondary lottery business. Based on the expected dis-synergies as a result of the business model change, ZEAL anticipates revenue of between EUR 70 million and EUR 73 million in the fiscal year 2020. As the gross margin in the online lottery brokerage business is naturally lower than in the riskier secondary lottery business, the company expects a gross margin of approximately 12% - a comparable level to Lotto24 in recent years. Depending on the general conditions, in particular the jackpot development, the timing of the implementation of the planned synergy effects and the marketing investments for the acquisition of new customers, EBITDA is expected to be between EUR 5 million and EUR 8 million. Due to the access to proven, more cost-effective marketing channels, the Company expects the German business of ZEAL Group to nearly double the number of new customers in 2020 with a lower CPL compared to the previous year.

  2020 2019*   Guidance Actual Billings (EUR million) 550-570 466.7 Revenue (EUR million) 70-73 113.5 Gross margin (%) Approx. 12 24.3 Adjusted EBITDA (EUR million) ** 5-8 29.4 CPL (German business, EUR) Lower than previous year 32.50 New registered customers (German business, thousand) *** Nearly twice as many new customers 274  

* Including Lotto24 since 14 May 2019, German secondary lottery business up to 15 October 2019 and Tipp24 online lottery brokerage business beginning with 15 October 2019 ** Result from operating activities before amortisation, depreciation, impairment and non-recurring expenses *** Related to the Germany business of the ZEAL Group; 2019: incl. Lotto24 since 14 May 2019 and Tipp24 only since the business model change on 15 October 2019 About ZEAL Network SE: ZEAL Network SE, Germany's leading online provider of state-licensed lottery products, is a Hamburg based Group which mainly brokers customers' tickets to the state lottery companies through the brands Lotto24.de and Tipp24.com, for which it receives a commission. The offerings include among others »Lotto 6aus49«, »Spiel 77«, »Super 6«, »EuroJackpot«, »GlücksSpirale«, lotto clubs, »Keno« and the »Deutsche Fernsehlotterie«. Founded in Germany in 1999, it was initially set up as a lottery broker. In 2005, it was floated on the Frankfurt Stock Exchange (Prime Standard) and became one of the most successful initial public offerings (IPOs) in Germany at the time. In 2009, the Group changed its focus from lottery brokerage to the secondary lottery business. It moved its registered office to London and was renamed as ZEAL Network SE in November 2014. In May 2019, ZEAL completed the takeover of Lotto24 AG, returned its Tipp24 secondary lottery to the German brokerage business in October 2019 and relocated its registered office back to Germany in the same month.

Contact: Frank Hoffmann Investor Relations Manager T: +49 (0)40 808 141-123frank.hoffmann@zealnetwork.de

26.03.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English Company: ZEAL Network SE Straßenbahnring 11 20251 Hamburg

Germany Phone: +49 (0)40 808141-123 Fax: +49 (0)40 808 141-199 E-mail: frank.hoffmann@zealnetwork.de Internet: www.zealnetwork.de ISIN: DE000ZEAL241 WKN: ZEAL24 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1007333   End of News DGAP News Service

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