ZEAL Network SE: Prize pay-out / guidance provided for 2019 (856191)

 
 ZEAL Network SE ( -) 
ZEAL Network SE: Prize pay-out / guidance provided for 2019 
 
12-Aug-2019 / 18:41 CET/CEST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
*Prize pay-out / guidance provided for 2019* 
 
In a secondary lottery held by MyLotto24 Limited, a fully consolidated 
minority shareholding of ZEAL Network SE, a customer has won a prize of EUR 
26.3 million. 
 
The self-retention specified in MyLotto24's hedging instruments will be 
utilized after the pay-out, part of which will be covered by those 
instruments. Total Operating Performance and EBITDA in the current fiscal 
year 2019 will therefore be impacted by EUR 21.5 million. Possible further 
jackpot winnings in 2019 will have no negative impact on EBITDA due to the 
full utilization of the self-retention. 
 
In addition to the future jackpot development for major lottery products, 
the exact timing of the planned business model change - in connection with 
the takeover of Lotto24 AG in May 2019 - is of decisive importance for the 
ZEAL Group's forecast. Since the more profitable secondary lottery business 
will be converted to the brokerage business permitted in Germany from this 
date, ZEAL expects negative effects on revenue and profitability in the 
fourth quarter of 2019. 
 
Based on the expectation of a business model change in October 2019, the 
effects on the customer base that cannot be conclusively assessed from 
today's perspective and the big price pay-out on 10 August 2019, ZEAL 
anticipates Total Operating Performance for the 2019 financial year 
significantly below the previous year (2018: EUR 160 million) and EBITDA 
between EUR 18 and 21 million (2018: EUR 48 million). 
 
The dividend policy for 2019 remains under review. 
 
Explanations of the key financial figures used can be found on the Company's 
website (available in the annual report 2018 at 
https://www.zeal-network.co.uk/investors/publications/ [1]. 
 
Contact: 
 
Frank Hoffmann, CEFA 
Investor Relations 
 
ZEAL 
5th Floor - One New Change 
London EC4M 9AF 
 
T [phone] 
F [phone] 
 
[e-mail] 
 
ISIN:           GB00BHD66J44 
Category Code:  MSCM 
TIDM:           - 
LEI Code:       391200EIRBXU4TUMMQ46 
OAM Categories: 2.2. Inside information 
Sequence No.:   16541 
EQS News ID:    856191 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=716b2d718dcd85f3d910617e171ea12e&application_id=856191&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

August 12, 2019 12:41 ET (16:41 GMT)