During the initial three months of the fiscal year 2022, Zeal Network’s net earnings rose by a significant 101.6% compared to the same period in the previous year. This growth was fueled by a combination of increased income and reduced operational expenditures.

Zeal Network’s net earnings experienced a doubling in the first quarter.

Revenue, encompassing income from lottery insurance, reached €25.1 million (£21.6 million/$26.4 million) in the three-month period ending on March 31, 2022. This represents an 11.0% increase from the €22.6 million recorded in the equivalent period of the preceding year.

Zeal’s German operations contributed the lion’s share of revenue (€24 million), with the remaining €1.1 million stemming from other ventures. Both areas benefited from elevated wagering activity.

Zeal’s consolidated group stakes, encompassing all customer wagers placed through products offered by Zeal, witnessed a 10.9% surge to €181.1 million. This upward trend was attributed to enhanced jackpot development and an expansion in the customer base.

Zeal welcomed 154,000 new registered customers during the quarter, a slight decrease from the 156,000 acquired in the previous year. The cost of acquiring each new registered customer climbed from €33.48 to €38.09.

Zeal attributed this increase primarily to a special promotional campaign for the “Freiheit+” charitable lottery. The company emphasized that the impact of this promotion would be felt over an extended period. In the absence of this promotion, the cost per acquisition would have remained comparable to the previous year.

Operational expenditures amounted to €9.

Sales declined by 8% to €16.5 million, while personnel costs fell by 20.2% with the number of workers dropping from 164 to 156. Marketing outlays rose by 3.3% to €7.3 million, but direct operational expenses decreased by 10.6% to €2.5 million and indirect operational expenses declined by 15.2% to €2.6 million.

Higher sales and lower costs led to a 95.6% year-over-year increase in EBITDA to €8.9 million in the quarter, up from €4.6 million in the same period last year.

Zeal also noted that amortization and depreciation expenses were €2.1 million, down 2.9% from the first quarter of 2021, resulting in an 187.6% rise in EBIT to €6.8 million.

After accounting for €0.158 million in financial charges and €0.043 million in losses from partners, profit before taxes was €6.7 million. Zeal paid €1.6 million in income tax, meaning net profit for the quarter was €5 million, more than double the €2.48 million achieved last year.

“We have had a strong start to 2022 and have once again achieved sales and profit growth, which gives us momentum to invest in further growth this year,” said Jonas Mattsson, CFO of Zeal.

Zeal also said its forecasts for full-year transaction volume, sales and EBITDA remain unchanged. Based on overall conditions, sales could reach at least €105 million, representing a 21.0% increase from last year.

Invoices are expected to reach at least €750 million, which would represent a 14.2% increase, while EBITDA should reach at least €30.

A rise of 8.3% from the previous year, reaching zero meters.

Subscribe to iGaming updates.”