Subsidiary Lottery Company Start-up Costs Hammer Zeal's Net Profit

But revenues are up and the directors remain optimistic

Online lottery group Zeal Network, formerly known as Tipp24, has posted a less-than-sparkling set of annual results that include a net profit dip of Euro 6 million, which the company's board attribute to start-up costs at group subsidiaries and associates which would provide future returns.
Key financial figures in 2014 included:
* Revenues up 8.3 percent y-o-y at Euro 140.7 million;
* Net profit at Euro 4.2 million, a Euro 6 million decline from the corresponding period in 2014 of Euro 10.2 million;
* EPS down at 0.50 Euro cents compared to Euro 1.23 in the previous year;
* EBIT down marginally at Euro 19.2 million (FY 2013: Euro 19.5 million);
* Cash flow from operating activities increased by 38 percent to Euro 23.1 million;
* As at December 31, 2014 the group had cash, pledged cash and short term deposits of Euro 108.1 million (prior year: Euro 156.1 million). The net cash position of Euro 39.6 million was significantly lower year-on-year due to the pay-out of a special Euro 7.50 per share interim dividend, which totalled Euro 62.9 million;
* Annual dividend payments expected to amount to at least Euro 2.80 per share from 2015 onwards, to be paid in quarterly instalments.
CEO Hans Cornehl observed that 2014 had been a busy year as the company made structural changes, rebranded and relocated to the UK.
Zeal had made progress in developing activities in its three areas of business: consumer facing secondary lotteries, B2B services for licensed lottery operators and the operation of own lottery games, and he predicted that this work had prepared the company for growth and a successful 2015 and beyond.
Cornehl said that in addition to the successful consumer-facing secondary lottery business operated independently by the MyLotto24 sub group, Zeal has pressed ahead with its growth initiatives in its other two business areas.
"Under the Lottovate and Lotto Network brands, Zeal offers digital services to licensed lottery operators and private business partners in various international markets," Cornehl said. "In 2014, the company was able to significantly grow the online channel of the Once lottery in Spain operating as a digital service partner. In the UK, Zeal runs online lotto games for football clubs such as Arsenal London."
Turning to the third business area, Cornehl revealed that Zeal aims to organise own lotto games in the medium term. Geo24, a joint venture with the minority participation Geonomics, optimised the innovative online lotto game GeoLotto for the UK consumer market and launched the revised product in September 2014.

Online Casino News Courtesy of Infopowa