Lotto24, a subsidiary of Zeal Network, has released its annual report for 2023, showcasing significant financial growth and strategic developments. The company’s performance reflects robust revenue increases driven by innovative online gaming offerings and expansion in customer engagement.
Financial Performance
In 2023, Lotto24 reported a substantial €885 million in income, marking a notable 16.7% rise from the previous year. The core lottery revenue increased by 10.8%, amounting to €115.4 million. This growth can be largely attributed to the successful introduction of online games on their platforms, including slot games, which alone generated €41.6 million in income and €39.6 million in revenue.
Strategic Initiatives
The strategic initiatives undertaken by Lotto24 in 2023 underscored their commitment to enhancing market leadership and brand recognition. Andrea Behrendt, CFO of Lotto24 AG, highlighted the company’s achievement in becoming a prominent hub for lottery winners in Germany, alongside a substantial increase in market share to 41.4%. The introduction of new product innovations also received positive feedback from customers, contributing to the overall revenue growth.
Customer Acquisition
Despite facing challenges related to jackpot dynamics that affected customer acquisition, Lotto24 attracted 597,000 new customers in 2023. While this represents a 15% decrease compared to the previous year, the company remains optimistic about future growth prospects given their strengthened market position and ongoing product enhancements.
Financial Health
The company’s EBITDA grew impressively by 28.8% to €33.0 million in 2023, underscoring strong operational efficiency and profitability. Looking ahead, Lotto24 anticipates further EBITDA growth, projecting figures between €40 million to €45 million for the current fiscal year. This optimistic outlook reflects confidence in sustained revenue streams and effective cost management strategies.
Strategic Acquisition
In a strategic move to consolidate ownership, Zeal Network, holding 95.45% of Lotto24’s shares, has proposed a squeeze-out of minority shareholders. This initiative, supported by an offer of €479.25 per share, aims to acquire the remaining shares totaling €36.3 million. Zeal Network has already secured necessary loan agreements to facilitate this transaction, signaling its commitment to optimizing operational synergies within its portfolio.
Lotto24’s 2023 annual report highlights a year of significant financial achievement and strategic milestones. The company’s focus on expanding its online gaming portfolio, enhancing customer engagement, and solidifying market leadership positions it well for future growth in the dynamic eLottery sector. With continued innovation and strategic investments, Lotto24 remains poised to capitalize on emerging opportunities and deliver sustained value to shareholders.