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ZEAL starts with 35 percent revenue growth into the year 2024
ZEAL Network SE, the leading German online provider of lottery products, has started the new financial year with a strong growth spurt. In the first quarter of 2024, billings from lotteries climbed by 22% to € 246.3 million. Group revenue increased by 35.0% to € 36.1 million (2023: € 26.7 million). EBITDA at Group level increased slightly by 1% to € 9.4 million due to one-off effects and the almost doubling of marketing expenses compared to the previous year.
“We made a very strong start to 2024 and were able to significantly accelerate our revenue growth, particularly in our core business of lottery brokerage. We are also particularly proud of the fact that we were able to achieve EBITDA slightly above the previous year’s level in the past quarter despite almost doubling our marketing expenses and a negative one-off effect from a major win in our charity lottery Deutsche Traumhauslotterie amounting to € 0.8 million. This shows that our measures to acquire new customers are paying off very quickly and that we are generating income across the entire breadth of our customer base,” says Sebastian Bielski, CFO of ZEAL. “With the announced squeeze-out at LOTTO24, we are also putting ZEAL in the best possible position for the future and are leveraging further efficiency potential.”
Revenue in core business grows by 28 percent
ZEAL’s significant revenue growth in the first quarter is primarily due to the strong performance of the lottery business. Billings increased by 22% to € 246.3 million, while revenue from lotteries rose by as much as 28% to € 32.0 million (2023: € 24.9 million). The growth in billings is primarily due to the 21% increase in the average number of active customers per month (MAU). ZEAL was also able to improve the gross margin in the lottery business to 13.0% (2023: 12.4%) thanks to a change in the product mix and further margin optimizations. Excluding the one-off effect from the distribution of a major prize in the company’s charity lottery Deutsche Traumhauslotterie, the gross margin would have been as high as 13.3%.
Games business with significant revenue growth compared to Q4 2023
The games business, which was launched last year, also developed very positively in the first three months of the year. Compared to the fourth quarter of last year, ZEAL was able to increase revenue from games by around 20% from € 1.8 million to € 2.2 million. At 7.0%, the gross margin was stable compared to the previous quarters.
ZEAL was also able to further expand its games portfolio at the end of the quarter. The subsidiary LOTTO24 AG received permission to offer a further 64 games.
Stable result thanks to efficient expansion of future earnings base
ZEAL invested heavily in future growth in the past quarter, acquiring more than twice as many new customers (320 thousand) as in the same period of the previous year (2023: 143 thousand). The company achieved this customer growth much more efficiently than in the same period of the previous year. At € 33.04, the acquisition costs per registered new customer (cost per lead, CPL) were noticeably lower than in the previous year (2023: € 36.77). Due to the company’s strategic decision to use the exceptionally good jackpot situation in January 2024 for efficient new customer growth, marketing expenses of € 13.4 million were 91% higher than in the same period of the previous year (2023: € 7.0 million). As a result, other operating expenses rose to € 21.0 million (2023: € 12.5 million). As a result of the increased number of new customers and the growth of the games business, the direct costs of business operations also rose to € 4.0 million (2023: € 2.7 million).
At € 9.4 million, EBITDA was slightly higher than in the first quarter of the previous year (2023: € 9.3 million). At € 7.5 million, EBIT was 6% higher than in the same period of the previous year (2023: € 7.1 million) due to lower depreciation and amortization recognized in profit or loss. Net income for the period rose to € 21.1 million (2023: € 4.7 million) due to the first-time recognition of expected tax benefits from the utilization of existing tax loss carryforwards in connection with the LOTTO24 squeeze-out.
Due to the good results of the first quarter of 2024, ZEAL confirms the forecast published on March 20, 2024.
The post ZEAL starts with 35 percent revenue growth into the year 2024 appeared first on European Gaming Industry News.
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EGT at ICE Barcelona 2025: Get ready to be stunned
EGT is prepared to make a long-lasting impression on visitors at ICE 2025, which will be held in Barcelona for the first time. The Bulgarian manufacturer of gaming equipment will showcase its compelling selection of bestsellers and high-potential new developments at one of the largest stands at the exhibition 3F30.
Among the novelties that will arouse the greatest interest will be 2 brand-new slot cabinets – 32-32 St and 32-32 Up. These models will certainly not go unnoticed by the event guests.
On display will be the newest addition to the company’s jackpot family – the 4-level Asian-themed Zhao Cai Shuang Yu. It will reveal the astonishing world of its 2 games, Prosperity Strike and Rising Coins.
The attendees will also be able to see and test the latest multigames from the Supreme Selection slot series. The Mega Supreme Fruits, Supreme Red, and Supreme Buy Bonus Prize Selection will present a lot of new slot titles, offering a perfect mix of fascinating themes, attractive bonus features, and great entertainment.
EGT will show its newest ETG developments as well. Among them will be the 32 T terminal, which will make its debut during the show. It will complement the company’s rich portfolio of ETG products, which are the preferred choice in numerous gaming venues around the world.
Expanding its offering, EGT will present the Supreme Series of game mixes, currently including the Supreme Roulette Union and Supreme Green Union multigames. Focusing exclusively on roulette, the Supreme Roulette Union blends the excitement of classic roulette gameplay with innovative jackpot systems and versatile features. Supreme Green Union combines popular games from the company’s portfolio with roulette, Keno, Baccarat, and Blackjack, offering players a unique and engaging experience.
Numerous new AWP and VLT products, created specifically for different markets, will also be at the visitors’ disposal, as well as the casino management system Spider, which will show its latest modules.
EGT Digital will also present its vast array of iGaming solutions, including instant and casino games, jackpots, and its in-house developed “all-in-one” betting platform X-Nave.
Nadia Popova, Chief Revenue Officer and VP Sales & Marketing at EGT, commented: “ICE is a very important event for us, which gives us the opportunity to meet with industry professionals from all over the world. We will welcome our current and potential new customers and partners at our stand to present them all new products from our portfolio, divided into zones, covering all gaming verticals. I believe in the positive potential of changes. That is why I think that the relocation of the show to Barcelona will open new business horizons and bring many opportunities for building fruitful partnerships, for which we as a company are ready. “
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Vibra Group Completes the Acquisition of TSA
Go-to LatAm content and platform developer purchases longstanding Brazil-based tech development partner to accelerate growth plans
Vibra Group, the ‘go-to’ content and platform developer for the LatAm region, has acquired TSA, a Brazil-based technology company and one of its longest standing development partners.
The acquisition will further strengthen the award-winning company and accelerate its growth plans with 55 specialist platform development experts based in Northern Brazil.
TSA and Vibra Group have been long-term partners with TSA contributing significantly to Vibra’s technological growth. TSA, which operates under the ServiceNet brand name, also has existing contracts with several Brazilian lotteries including Loteria do Tocantins, Loteria do Maranhao, Loteria de Sergipe and Loteria da Paraíba.
The integration of TSA’s expert teams will immediately enhance Vibra’s platform development roadmap with additional resources dedicated to the Vibra Solutions business unit and will consolidate the Vibra Group’s structure across the LatAm region. The LatAm based team is focused on game studios, Remote Gaming Server (RGS), and Electronic Gaming Machines (EGM). The Brazil-based team specialising in Player Account Management (PAM) and sportsbook solutions.
Vibra’s product strategy is to service every client need delivering a complete solution on three core areas: sportsbook and casino platform with multiple levels of customization and flexibility; content aggregation platform including proprietary titles and third party games from the main brands in the industry; and a state-of-the-art EGM platform allowing operators to distribute products and content through VLT / retail terminals. The group’s 3 business divisions: Vibra Gaming, Vibra Solutions and Vibra VLT / Retail.
Ramiro Atucha, CEO, Vibra Group, said: “We’re delighted to close the acquisition of TSA and welcome the team to the Vibra family. TSA are one of our closest and most trusted partners with whom we’ve closely collaborated across several significant projects as well as ongoing development work, therefore joining forces makes perfect strategic sense.
“Our expansion and first M&A deal follows significant customer demand and growth across the LatAm region in the last 12 to 18 months so the timing is ideal. We’re very excited to have the TSA team join us as we continue our journey.”
Werter Luna, CEO, TSA, said: “We’re thrilled with the outcome of joining Ramiro and the Vibra team after having worked together for so long. The synergies were very clear and both companies know we are stronger together. The future is very bright and we’re ready to go on the ambitious plans we have to significantly grow our business.”
Founded five years ago by a management team of highly experienced industry experts with decades of land-based and online experience, Vibra has emerged as one of the most exciting and innovative content studios and software developers in the industry and rapidly grown to become the LatAm market’s ‘go-to’ partner for local and international operators.
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GIANTX begins its 2025 LEC journey with fresh faces
The global esports organization GIANTX is ready to kick off its journey in the League of Legends EMEA Championship (LEC), Europe’s premier esports competition. With a revamped roster and a clear goal of qualifying for the 2025 Worlds in China, the team begins its campaign this Saturday with a challenging schedule.
Led by renowned coach André Guilhoto, the roster features Lot (toplaner), Closer (jungler), Jackies (midlaner), Noah (AD carry), and Jun (support). Jackies, the 2024 Rookie of the Year, returns as the only player from last year’s roster. Lot, a standout in the LFL, joins as a promising top laner. Closer, a three-time Worlds participant and North American champion, brings leadership and experience. Meanwhile, Noah and Jun, from Fnatic, aim to establish themselves as one of the best bot lanes in the LEC.
GIANTX continues to rely on advanced data analytics and statistics in building its roster. “We believe in this roster. It’s a mix of hungry, talented players and experienced individuals. This team has the potential to be a strong contender in the LEC,” said David Alonso, GIANTX’s head of esports.
The journey begins on January 18 against SK Gaming (7:30 PM), followed by Rogue (Sunday, 6:45 PM) and Karmine Corp (Monday, 9:00 PM). In the second week, GIANTX will face Movistar KOI, Team Heretics, and G2 Esports, closing the regular phase against Fnatic, BDS, and Vitality. With a demanding schedule ahead, GIANTX is set to prove it is ready to compete at the highest level.
The post GIANTX begins its 2025 LEC journey with fresh faces appeared first on European Gaming Industry News.
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