ZEAL announces preliminary numbers for 2022 and outlook for 2023

(Hamburg, 27 February 2023) According to preliminary calculations, ZEAL Network SE achieved double-digit growth in billings, revenues and EBITDA in the financial year 2022.

Billings rose by 16% to €758.4 million (2021: €656.5 million), thus exceeding the forecast of at least €750 million. Thanks to a higher-margin product mix, revenues grew disproportionately by 21% to €105.2 million (2021: €86.8 million¹), thus exceeding the forecast of at least €105 million. At 12.9%, the gross margin exceeded the previous year's level by 0.7 percentage points (2021: 12.2%). Despite the strong expansion of marketing activities in phases of high jackpots, EBITDA increased by 14% to €31.7 million (2021: €27.7 million) and was thus above the forecast of at least €30 million.

Personnel expenses remained unchanged at the previous year's level of €18.9 million (2021: €19.0 million). Due to intensive marketing activities in July and November 2022, marketing costs increased by around €12 million to €34.1 million (2021: €22.4 million) and were thus responsible for most of the increase in other operating expenses to €57.0 million (2021: €41.1 million).

Due to successful marketing activities, registered new customers were 29% higher than in the previous year at 703 thousand (2021: 544 thousand).

Outlook 2023

In the financial year 2023, we plan to further expand our market leadership as an online provider of lottery products and to introduce new products, including online games under the licence for virtual slot machine games we applied for. Depending on the general conditions – and an average jackpot development – ZEAL anticipates billings in the range of €800 million to €830 million for the Germany segment. Moreover, ZEAL expects revenues in a range of €110 million to €120 million in the fiscal year 2023. EBITDA is expected to reach in a range of €30 million to €35 million. Compared to the previous year, ZEAL plans to invest significantly more in the acquisition of new customers and expects marketing expenses of €34 million to €39 million.

The annual report as at 31 December 2022 will be published on 23 March 2023.

¹ Including reimbursements of €3,450 thousand from the insurance to compensate for jackpot winnings, which were included in other operating income in 2021.

Explanations of the performance indicators used can be found in the 2021 Annual Report on the Company's website at www.zealnetwork.de/investors/reports-presentations.

1569757  27-Feb-2023 CET/CEST