Lotto24’s Lottery Revenue Grew By 11% And The Company’s Displacement Is Inevitable. Lotto24 Publishes Figures For The 2023 Financial Year

Lotto24’s Financial Growth In 2023

Due to the fact that the company’s revenue has increased Zeal is pushing for its ousting.

German e-lottery company Lotto24, a subsidiary of Zeal Network, has published its annual report for 2023:

— Revenues totaled 885 million euros ($967.7 million), up 16.7% from a year earlier.

— In particular, lottery revenue rose 10.8% to €115.4 million, which can be attributed to the launch of online gaming on the company’s platform.

— The gaming machines on the platforms under the Lotto24 and Tipp24 brands were launched by the company in 2023. These alone generated €41.6 million in revenue and €39.6 million in revenue.

Lotto24 AG’s CFO, Andrea Behrendt, said: “In 2023, we further strengthened our position as market leader and our brand recognition. We are proud that the Lotto24 brand has become a real hotbed of winners: last year it generated more record winnings than any other lottery provider in Germany.”

“Our strong sales and profit figures, as well as our market share, which has grown to 41.4%, show that we are on the right track.”

Zeal’s Squeeze-Out Offer

— During 2023, Lotto24 attracted 597,000 new customers, 15% less than the brand attracted in 2022. Lotto24 attributes this to a “significantly negative jackpot situation”.

— EBITDA grew by 28.8% to EUR 33.0 million and EBITDA is expected to be in the range of EUR 40-45 million this year.

The company’s squeeze-out request will be put to Lotto24’s annual general meeting on August 27.

Zeal Network currently holds a 95.45% stake, but has offered minority shareholders €479.25 per share.

This amounts to a total of €36.3 million to acquire the remaining shares in Lotto24, for which Zeal has already signed the relevant loan agreements.

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