ZEAL Network has announced a solid underlying performance in the first quarter of 2019.

The first quarter of 2019 was the first reporting period following the closure of Lotto Network in November 2018 and the Group’s Spanish consumer-facing business, Ventura24 S.L.U. (“Ventura24”) in December 2018. Despite this and a lower number of large jackpots during the quarter having a negative impact on billings, revenue and TOP, performance was solid on a like-for-like basis^[.

The Group delivered Billings of EUR67.4m; down 7.4% year-on-year (2018: EUR72.8m); down 1.6% on a like-for-like basis. .Revenue of EUR36.5m; down 5.8% year-on-year (2018: EUR38.7m); down 3.5% on a like-for-like basis. TOP of EUR37.4 million; down 6.2% year-on-year (2018: EUR39.8m). Adjusted EBIT of EUR11.6m; up 26.3% year-on-year (2018: EUR9.2m)

With a 16% year-on-year reduction in costs ZEAL delivered a 26.3% increase in Adjusted EBIT to EUR11.6m (2018: EUR9.2m). This cost reduction included a EUR2.2m decrease in personnel expenses and EUR3.0m reduction in other operating expenses such as consulting services and hedging. The Group expects to implement further synergies and reduction in costs before exceptional items during 2019 as it prepares to transform its business. ZEAL’s net cash position improved by 36.2% to EUR102.1m (2018: EUR75.0m).

ZEAL also continued to build on the positive customer acquisition trend it has developed in recent years. During the quarter, ZEAL delivered 182,000 new registered customers for the Group and its partners – a 30% increase year-on-year (2018: 140,000). Average Billings Per User were broadly maintained at EUR57.47 (EUR58.02).

Jonas Mattsson, CFO, ZEAL, said: “We delivered a positive EBIT performance, reduced our cost base and further improved our net cash position. These results highlight the strong position we have created for ZEAL and set us up well as we prepare to complete our acquisition of Lotto24. I look forward to next week’s reunification of ZEAL and Lotto24 and, together, building our Group’s future.”