Zeal Network Se · XETR:TIMA
Zeal Network — Q3 2021 Earnings Presentation
23 slides from Zeal Network's earnings presentation, Nov 11, 2021
Slide 1: Earnings Call
Earnings Call Quarterly Statement as of 30 September 2021 11 November 2021 ZEAL NETWORK SE EARNINGS CALL | NOV 2021 1
Slide 2: Content
Content SUMMARY FINANCIAL UPDATE GUIDANCE KEY TAKE-AWAYS ZEAL NETWORK SE EARNINGS CALL | NOV 2021 2
Slide 3: Summary 9M 2021
Summary 9M 2021 ➢ Further growth in a weaker jackpot situation • Billings and revenue increased despite low jackpots • Profitability significantly improved 9M ➢ Successful stock market withdrawal of LOTTO24 AG ➢ ZEAL supports vaccination campaign of the Federal Government 2021 ➢ The largest price ev
Slide 4: Current regulation works in our favour
Current regulation works in our favour New GlüStV 2021 • No expiry date (can’t be terminated before 2028) • Opportunities: Games, Sports Betting Games License • Application (permit) filed in July 2021 • Authority stated recently: “First permits will be issued earliest in Q4 but certainly in the firs
Slide 5: Financial Update
Financial Update ZEAL NETWORK SE EARNINGS CALL | NOV 2021 5
Slide 6: Jackpot development - only 3 peaks in 2021 vs. 9 in 2020
Jackpot development - only 3 peaks in 2021 vs. 9 in 2020 in €m LOTTO 6aus49* 40 in €m Average Peak 30 YTD 20 10.3 0 2021 10 YTD 10.9 3 Draw 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 2020 2021 2020 * Since 23 September 2020, the am
Slide 7: Income Statement 9M 2021 - condensed
ZEAL Income Statement 9M 2021 - condensed in € thousand 9M 2021 9M 2020 Change in % Comments ➢ Revenue: Revenue 65,053 64,457 +0.9 − Revenue increased by 1%, despite low jackpots ➢ Total costs of operations: Personnel expenses -14,485 -16,593 -12.7 − Total costs of operations decreased by 19% compar
Slide 8: Other performance indicators I
Other performance indicators I Gross Margin Billings (Germany Segment) in € thousand in % +5% 493,192 471,757 12.3 -0.1% p.p. 12.2 9M 2020 9M 2021 9M 2020 9M 2021 Weaker jackpot development results in a slightly Further growth despite weaker jackpot development decrease in gross margin ZEAL NETWORK
Slide 9: Other performance indicators II
Other performance indicators II New registered customers Net Cash (Germany segment) in €m in thousand 787 +12% 65.2 446 58.0 22.0 23.2 30/09/2020 30/09/2021 9M 2020 9M 2021 Net Cash Contingent Liability for VAT Strong net cash generation mainly driven by Management dialed down marketing operating pr
Slide 10: Other performance indicators III
Other performance indicators III Cost per Lead, CPL Monthly Active Users (MAU)1) Average Billings per User, ABPU2) (Germany Segment) (Germany Segment) (Germany Segment) in € in thousand in € 987 972 27.58 27.57 53.01 56.38 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 Our "#geimpftgewinnt" campaig
Slide 11: Guidance
Guidance 2021 ZEAL NETWORK SE EARNINGS CALL | NOV 2021 11
Slide 12: Consolidated Guidance 2021
Consolidated Guidance 2021 2021 2021 2020 in €m Guidance previously Actual Billings (Germany segment) around 650 at least 700 651.8 Revenue around 86 at least 95 87.0 Adjusted EBITDA1) around 25 at least 20 12.7 1) Earnings before interest, taxes, depreciation, amortisation and non-recurring expense
Slide 13: Dividend Policy
Dividend Policy • Due to the positive liquidity situation of the ZEAL Group Total pay-out p.a. in million € and the expected further increase in profitability, we have 25 22.4 paid-out a total of €20.1 million (2019: €17.9 million) 20.1 respectively €0.90 per share (2019: €0.80) in dividends to 20 1
Slide 14: Key Take-Aways
Key Take-Aways ZEAL NETWORK SE EARNINGS CALL | NOV 2021 14
Slide 15: Key Take Aways
KEY TAKE AWAYS Further growth despite comparatively low jackpots Profitability significantly increased Successful stock market withdrawal of LOTTO24 AG We adapt our marketing measures to the respective market situation ZEAL NETWORK SE EARNINGS CALL | NOV 2021 15
Slide 16: Questions Answers
Questions Answers ZEAL NETWORK SE EARNINGS CALL | NOV 2021 16
Slide 17: Disclaimer
Disclaimer The information contained herein must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. This document contains certain forward-looking statements relating to the busin
Slide 18: Appendix
Appendix ZEAL NETWORK SE EARNINGS CALL | NOV 2021 18
Slide 19: Consolidated Income Statement and Balance Sheet
Consolidated Income Statement and Balance Sheet in €k 9M 2021 9M 2020 Change in % Income Statement Revenue 65,053 64,457 +0.9 Total costs of operations -48,081 -59,291 -18.9 Adjusted EBITDA1) 17,649 6,903 +155.7 EBIT 11,076 2,864 +286.7 Profit before taxes 10,760 5,595 +92.3 Net Profit 7,344 6,537 +
Slide 20: Reporting as of 30/09/21 in €k
Business Unit Segment Reporting as of 30/09/21 in €k Germany Other Total Revenue 61,460 3,593 65,053 Other operating income 676 2 677 EBITDA 16,553 1,096 17,649 Depreciation/amortisation – – -6,573 EBIT – – 11,076 Financial result – – -124 Share of loss from associates -191 EBT – – 10,760 Income tax
Slide 21: KPIs
KPIs Billings (in €m) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 153.3 134.0 140.0 174.4 157.3 181.0 163.3 169.5 160.4 ABPU (in €) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 57.3 48.4 49.5 54.5 54.9 61.3 56.4 58.4 54.4 MAU (in k) Q3 2019 Q4 2
Slide 22: Financial calendar 2021
Financial calendar 2021 Publication of Annual Report 2020 25 March 2021 Publication of Q1 Quarterly Statement 7 May 2021 Annual General Meeting 1 June 2021 Publication of Half-Year Report 12 August 2021 Publication of Q3 Quarterly Statement 11 November 2021 Publication of Annual Report 2021 24 March
Slide 23: Contact
Contact: Frank Hoffmann, CEFA Senior Investor Relations Manager ZEAL Straßenbahnring 11 20251 Hamburg T +49 (0)40 809 036 - 042 M +49 (0)175 267 3420 frank.hoffmann@zealnetwork.de www.zealnetwork.de ZEAL NETWORK SE EARNINGS CALL | NOV 2021 23