While Zeal Networks saw revenue growth from January to June this year, it is rather marginal. The rise stems from the contribution of Lotto 24, a business newly acquired.
The company had closed its Lotto Network and Venture24 brokerage businesses that were in decline.
Stopping the revenue decline
The good news is that billings are up along with total operating performance and revenue from other operating income. Also included in the statistics is statutory revenue. When the numbers reflected the take of Lotto 24, the increase is clear.
Since being added to Zeal in May, Lotto24 has contributed €4.8m in revenue. This certainly has helped offset earlier declines. Zeal had tried cutting personal and operating expenses. The number of employees was reduced from 350 to 271, and it could go as low as 200 by next year.
It is hard to cut marketing as it brings in customers, and costs in this area went up for Zeal did spend more on marketing from €9.8m to €11.0m. The aggregate savings hit the bottom line and total gross earnings are now greater than 2018.
According to Chief Financial Officer, Jonas Mattson,
“Even though we still have a lot of work to do, we are well on our way to achieving reunification with Lotto24 and the transformation of our German core business into online lottery brokerage as planned.”
Zeal is convinced that the combination of the two companies will provide the best path to sustainable growth for and will lead to tangible added value for our customers, employees and shareholders.