Zeal Network SE — Earnings Release 2019

May 7, 2019

07-May-2019 / 07:32 CET/CEST

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London, 7 May 2019

ZEAL Network SE: Asolid start to 2019

• Solid underlying performance in billings, revenue and Total Operating Performance (TOP) despite impact from closure of Ventura24 S.L.U. and Lotto Network
• Costs down 16%year-on-year
• Positive EBIT performance.Adjusted EBIT up 26.3%year-on-year
• Acquisition of Lotto24AG('Lotto24') to complete next week after 93.04%of Lotto24 shareholders accepted offer

ZEAL Network SE ('ZEAL') today 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 [1] .

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)
• Statutory EBIT of EUR9.8m; up 6.7% year-on-year (2018: EUR9.2m)
• Net cash of EUR102.1m; up 36.2% year-on-year (2018: EUR75.0m)

With a 16% year-on-year reduction in costs ZEAL delivered a 26.3% increase inAdjusted 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.'

The acquisition of Lotto24 is expected to close on 14 May 2019 after 93.04% of Lotto24 shareholders accepted the voluntary public takeover offer within the two acceptance periods.

2019 Outlook:

In view of the special situation created by the Lotto24 transaction and the transformation of ZEAL's core German business model later in 2019, ZEAL does not intend to provide any financial guidance at this point in time. ZEAL's dividend policy for 2019 is currently under review.

- ENDS -

Investor Relations contact:

Frank Hoffmann Investor Relations Manager, ZEAL Network T: +44 (0)20 3739 7123

frank.hoffmann@zeal-network.co.uk

Media contact:

Matt Drage Head of Corporate Communications, ZEAL Network T: +44 (0)7976 872 861 matt.drage@zeal-network.co.uk

Notes to Editor:

• 1. ZEAL is an international digital lottery group.
• 1. The company was founded in 1999. Renamed as ZEAL Network SE in 2014.
• 1. The company is headquartered in London and its shares are listed on the Prime Standard of the Frankfurt Stock Exchange.
• 1. The Group has more than 3.9 million customers globally. Since its incorporation, ZEALGroup has generated stakes of more than EUR3 billion and paid out more than EUR1.5 billion in winnings.
• 1. ZEALGroup includes all subsidiaries of ZEAL Network SE and the affiliated companies of the independent shareholding myLotto24 Ltd.
• 1. Total Operating Performance is calculated as the sum of Revenue and Other Operating Income as disclosed in the Consolidated Income Statement.ZEAL's Q1 2019 results are available at: http://www.zealnetwork.co.uk/investors/publications/

[1] Like-for-like excludes the 2018 comparative information for Lotto Network Limited and the consumer-facing business of Ventura24, in order to provide comparable information relating to the ongoing business.

ISIN: GB00BHD66J44 Category Code:QRF TIDM: - LEICode: 391200EIRBXU4TUMMQ46 Sequence No.: 8523 EQS News ID: 807845

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