Lotto24, a leading German eLottery company and a subsidiary of Zeal Network, has recently published its annual report for 2023. This comprehensive report showcases significant growth and strategic advancements within the company, underscoring its dominant market position and innovative approach to the online lottery industry. With remarkable financial performance and strategic initiatives, Lotto24 continues to solidify its status as a market leader.

Lotto24, a Subsidiary of Zeal Network, Publishes 2023 Annual Report

Financial Performance

In 2023, Lotto24 reported an impressive income of €885 million ($967.7 million), marking a robust 16.7% increase compared to the previous year. This surge in income highlights the company’s successful expansion and the effectiveness of its strategic initiatives. The lottery revenue, in particular, rose by 10.8% to reach €115.4 million, a growth attributed to the launch of new online games on its platform.

Online Gaming Innovations

June 2023 saw the launch of slot games on both the Lotto24 and Tipp24 branded platforms. These new additions proved to be highly lucrative, generating €41.6 million in income and €39.6 million in revenue. The introduction of these online games has not only diversified Lotto24’s product offerings but also significantly boosted its revenue streams.

Market Leadership and Brand Awareness

Andrea Behrendt, the CFO of Lotto24 AG, emphasized the company’s strengthened market position and brand awareness. She stated, “In 2023, we further expanded our position as market leader and our brand awareness. We are proud of the fact that the Lotto24 brand in particular has developed into a real hotbed of winners, producing more record winners last year than any other lottery provider in Germany.” This statement highlights the company’s commitment to maintaining its leadership in the industry and fostering a strong brand presence.

Customer Growth and Engagement

Throughout 2023, Lotto24 attracted 597,000 new customers, although this represents a 15% decrease from the 703,000 new customers gained in 2022. The company attributes this decline to the “significantly negative jackpot situation”. Despite this, Lotto24’s ability to attract a substantial number of new customers showcases its enduring appeal and effective customer engagement strategies.

EBITDA Growth and Future Projections

Lotto24’s EBITDA saw a significant growth of 28.8%, reaching €33.0 million. The company projects an even more optimistic outlook for the current year, expecting EBITDA to range between €40 million and €45 million. This anticipated growth reflects the company’s confidence in its strategic direction and operational efficiency.

Squeeze-Out Proposal

A key highlight of the annual report is the squeeze-out request, which is set to be addressed at the Annual General Meeting of Lotto24 on 27 August. Zeal Network, currently owning 95.45% of Lotto24’s shares, has offered €479.25 per share to the minority shareholders. This offer equates to a total of €36.3 million for acquiring the remaining shares. Zeal Network has already secured the necessary loan agreements to facilitate this acquisition, further consolidating its control over Lotto24.

International Expansion and Collaborations

In an exciting development, 916 Gaming has launched a new game, ‘Team USA’, in collaboration with the Virginia Lottery. This game allows players to virtually participate in the upcoming Olympic Games through events such as Archery, Track & Field, and Gymnastics. This international collaboration underscores the expanding influence and innovative spirit of the companies involved.

Conclusion: The 2023 Annual Report

Lotto24’s 2023 annual report is a testament to its strategic foresight, innovative initiatives, and robust financial performance. The company’s significant growth in income, successful launch of online games, and strong market leadership position it well for continued success. As Lotto24 continues to expand and innovate, it remains a key player in the eLottery industry, setting benchmarks for others to follow.

FAQs About Lotto24’s 2023 Annual Report

1: What was Lotto24’s total income for 2023? 

Lotto24 reported a total income of €885 million ($967.7 million) for 2023, marking a 16.7% increase from the previous year.

2: How much did Lotto24’s lottery revenue increase in 2023?

Lotto24’s lottery revenue increased by 10.8% to €115.4 million in 2023.

3: What new online games did Lotto24 launch in 2023? 

In June 2023, Lotto24 launched slot games on both the Lotto24 and Tipp24 branded platforms.

4: How much income and revenue did the new slot games generate? 

The new slot games generated €41.6 million in income and €39.6 million in revenue.

5: What did Andrea Behrendt, CFO of Lotto24 AG, say about the company’s market position? 

Andrea Behrendt stated, “In 2023, we further expanded our position as market leader and our brand awareness. We are proud of the fact that the Lotto24 brand in particular has developed into a real hotbed of winners, producing more record winners last year than any other lottery provider in Germany.”

6: How many new customers did Lotto24 attract in 2023? 

Lotto24 attracted 597,000 new customers in 2023, which is a 15% decrease from the 703,000 new customers gained in 2022.

7: What was the reason for the decline in new customers? 

Lotto24 attributed the decline in new customers to the “significantly negative jackpot situation.”

8: What was Lotto24’s EBITDA growth in 2023? 

Lotto24’s EBITDA grew by 28.8% to €33.0 million in 2023.

9: What is Lotto24’s projected EBITDA for the current year? 

Lotto24 expects the EBITDA for the current year to be between €40 million and €45 million.

10: What is the squeeze-out request mentioned in the report? 

The squeeze-out request is a proposal to be addressed at the Annual General Meeting of Lotto24 on 27 August, where Zeal Network has offered €479.25 per share to the minority shareholders.

11: How much does Zeal Network currently own of Lotto24’s shares? 

Zeal Network currently owns 95.45% of Lotto24’s shares.

12: How much is Zeal Network offering to acquire the remaining shares of Lotto24? 

Zeal Network is offering a total of €36.3 million to acquire the remaining shares of Lotto24.

13: What new game did 916 Gaming launch in collaboration with the Virginia Lottery? 

916 Gaming launched a new game called ‘Team USA’ in collaboration with the Virginia Lottery, allowing players to virtually participate in the upcoming Olympic Games through events such as Archery, Track & Field, and Gymnastics.

14: What strategic focus does Lotto24 emphasize in its 2023 report? 

Lotto24 emphasizes its commitment to expanding its market position, enhancing brand awareness, and innovating its product offerings to maintain its leadership in the eLottery industry.