Cost cutting drives ZEAL Network profit increase
Lottery operator sees revenues rise 13% to 34m in Q1 as EBIT increases by 1075% to 14.1m
ZEAL Network is on course to achieve its target of doubling EBIT this year after reporting a “significant improvement” in Q1 revenues and profits.
The lottery operator, formerly known as Tipp24, saw revenues increase 13% year-on-year to 34m while EBIT grew a massive 1075% to 14.1m for the three month period.
The firm attributed its improved performance to lower than expected jackpot pay-outs, and a 32% reduction in operating expenses, particularly marketing costs, to 19m.
The boost to reveneus and reduced operating expenses saw net profit rise from 109,000 in Q1 2014 to 9.5m this year.
ZEAL chief exec Dr Hans Cornehl said his firm’s first quarter results confirmed its “positive outlook for the full year” and “laid the foundation for further growth”.
“We are making good progress with our business initiatives,” Dr Cornehl said. “With its three strategic business areas, ZEAL is well position to capitalise on opportunities in our target markets in Europe and North America,” he added.
Earlier this year ZEAL appointed Jonas Mattson as the firm’s new chief financial officer, ending a five-month search to fill the role following the departure of Andreas Keil in September.