Frankfurt-listed online lottery ZEAL Network has posted a 23% drop in revenue to €87m for 2020.

The company said transaction volume of the ZEAL Group rose to EUR 652.8 million in the 2020 financial year, in addition to the first year-round inclusion of LOTTO24, the positive jackpot development and the associated strong acquisition of new customers contributed to this. 

In comparison to the previous year, sales revenues fell by 23% to EUR 87.0 million due to the expected sales dissynergies as part of the business model change. 

ZEAL plans to further expand its market leadership as an online provider of state and other permitted lottery products. Depending on the general conditions – in particular the jackpot development – the company expects a transaction volume of at least € 700 million for the Germany segment.

After exceptionally strong jackpots in the previous year, ZEAL assumed an average jackpot development, so that a lower one growth rate than in the previous year. In addition, the company assumes that sales in the 2021 financial year will be at least €95 million. For the adjusted EBITDA, ZEAL expects at least €20 million with marketing investments to acquire new customers of around €32 million that are similar in comparison to the previous year.

Dr. Helmut Becker, CEO ZEAL Network SE: “With the interplay of economically sensible marketing investments, high growth in new customers, strong technology and exciting product innovations, we have set the course for a promising future.”