Revenue increased by as much as 19% to €22.6 million despite a "comparatively weak" environment for lotteries in Germany
On Monday 7 May, German lottery provider ZEAL reported a promising start to 2021 despite the challenges encountered due to the COVID-19 pandemic.
Increased billings and revenue was announced for the first quarter of 2021. Billings rose by 17% to €163.31 million (2020: €140.0 million), with Germany contributing to €163.3 million (2020: €139.7 million).
Revenue reached €22.6 million (2020: €19.0 million), boasting a 19% increase from the year prior.
Moreover, despite the current market environment elicited by the pandemic, ZEAL gained 156,000 new registered customers in the Germany segment.
The staggering figures are reported to be the result of ZEAL's business model engrained in customer loyalty and the unwavering popularity of lotteries in Germany.
The company shared in a statement:
Even though customer acquisition is naturally more difficult in low jackpot phases, such as the first quarter of 2021, correspondingly higher costs per lead are justified by the fact that it is precisely those lottery players won during these periods who generally exhibit higher long-term activity and thus a better customer lifetime value. As a result, the payback periods of new customers are only slightly longer,
Source: Yahoo! Sport
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