DGAP-News: ZEAL Network SE: ZEAL reports a solid and

DGAP-News: ZEAL Network SE / Key word(s): Half Year Results ZEAL Network SE: ZEAL reports a solid and profitable first half of 2016 and is progressing in line with its strategic objectives 12.08.2016 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ZEAL reports a solid and profitable first half of 2016 and is progressing in line with its strategic objectives - Total operating performance reached to EUR 61.4 million (prior year: EUR 65.5 million) - EBIT in the first half year amounted to EUR 10.3 million (prior year: EUR 18.5 million) - Pay-out of the second interim dividend for 2016 amounted to EUR 0.70 per share (London, 12 August 2016) ZEAL Group continued its solid and profitable development in the first six months of 2016. With four new instant win games launched in the period, strengthening the Group's customer facing business. Total operating performance growth in the first half of 2016 was affected by a high prize pay-out amounting to EUR 37 million. Thanks to a special insurance policy covering a large portion (EUR 20 million) of this big win, the overall impact on total operating performance was only EUR 17 million. The impact of the big winner was further mitigated by increased revenue from instant win games, and higher average spend from the customer base, resulting in total operating performance of EUR 61.4 million, representing a decrease of only EUR 4.1 million on prior period. 'Normalised' revenue(1) of EUR 69.5 million increased by EUR 1.5 million period on period, despite the distraction of the Euro 2016 Championship, as well as lower average jackpots. EBIT in the first six months amounted to EUR 10.3 million (prior year: EUR 18.5 million) which represents a decrease of EUR 8.2 million compared to the same period in the prior year. This decrease was primarily attributable to uncontrollable variances including the decrease from total operating performance (EUR 4.1 million) together with period on period adverse exchange movements (EUR 2.8 million). Earnings per share in the first half year of 2016 decreased because of above from EUR 1.52 to EUR 0.75. Dr Helmut Becker, Chief Executive Officer of ZEAL: "We are pleased to report half year results which highlight the profitability and the stable underlying growth momentum of our group. ZEAL has continued to leverage its instant win games initiative, and has improved its marketing effectiveness. We continue to drive our business-to-business offering as planned. We see lots of growth potential by continuously innovating the online lottery market." ZEAL is satisfied with its current growth trajectory and confident that adherence to the strategic objectives set out in the 2015 Annual Report will result in a positive EBIT growth momentum for the rest of 2016. In accordance with its dividend policy, ZEAL Network paid out the second interim dividend of 2016 amounting to EUR 0.70 per share at the end of Q2 2016. The Group intends to pay two more instalments of EUR 0.70 per share in 2016 and continue quarterly payments in future years. The dividend policy is subject to periodic review and possible amendments depending on future earnings and financial position. ZEAL re-iterates outlook for 2016 The strategic outlook remains unchanged with attractive growth opportunities in ZEAL's target markets. The Group's positive development is in line with its strategic goals. Favourable European Courts rulings have enabled ZEAL to enhance its marketing capabilities. ZEAL Group is confident that its ability to increase direct investment in marketing will deliver the planned growth strategy thereby building on the existing customer base. Popular instant win games continue to attract new target groups who are looking for an exciting gaming experience and have increased the average revenue generated from customers. The Group will further cater to this demand with innovative games and benefit from this growing market. ZEAL remains well positioned to capitalise on opportunities arising from changes to regulatory conditions and the relatively low internet penetration of the lottery industry. As announced on 17 May 2016, ZEAL expects full year total operating performance to be EUR 125-135 million and full year EBIT to be EUR 25-35 million. Selected Financials: <pre> H1 2016 H1 2015 Revenue EUR '000 38,330 25,698 Total operating EUR '000 61,444 65,542 performance EBIT EUR '000 10,264 18,520 Net profit EUR '000 6,329 12,711 Earnings/share EUR 0.75 1.52 </pre> (1) Consolidated "normalised" revenue represents gross revenue generated adjusted for differences between actual and expected prize pay-outs. Further explanation is included on page 7 of the Interim Financial Report 2016. *** Press contact: ZEAL Network SE Press office Tel.: +44 (0)20 3739-7000 E-Mail: media@zeal-network.co.uk Internet: www.zeal-network.co.uk About ZEAL Network SE: ZEAL Network SE and its consolidated companies specialise in the area of online lottery. We offer consumer facing lottery-based games as well as business-to-business solutions. Our vision is to create a better world of lottery. ZEAL Network SE is a London based company, founded in Germany in 1999 as Tipp24 SE. In November 2014, the company was renamed ZEAL Network SE. Its shares are listed on the Prime Standard of the Frankfurt Stock Exchange and are included in the SDAX index. Since its incorporation, ZEAL has generated stakes of 2.5 billion euros and thus contributed over 650 million euros in taxes and duties. ZEAL holds equity interests in businesses running under the following brands: Lottovate offers digital services to licensed lottery operators around the world (www.lottovate.com). Lotto Network enables private business partners to host their own branded lotto product (www.lottonetwork.com). Ventura24 is a lottery ticket broker in Spain (www.ventura24.es). Tipp24 offers consumer facing secondary lottery products (www.tipp24.com). --------------------------------------------------------------------------- 12.08.2016 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 5th Floor One New Change EC4M 9AF London United Kingdom Phone: +44 (0)20 3739-7000 Fax: +44 (0)20 3739-7099 E-mail: office@zeal-network.co.uk Internet: www.zeal-network.co.uk ISIN: GB00BHD66J44 WKN: TPP024 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 491979 12.08.2016