ZEAL Network has revealed the introduction of the new Point of Consumption in the UK (PoC) Tax was one of the main reasons behind a year-on-year jump in earnings before interest and tax (EBIT) during the first half of 2015.
The online lottery firm, which rebranded from Tipp24 in 2014, posted EBIT of €18.5 million ($20.6 million), which represents an increase of 209% on the €6 million achieved in the same period last year.
ZEAL noted that a drop in gaming duty in the UK meant a “significant decrease of operating expenses” for the company, which in turn led to the jump in EBIT.
Net profit was also up from €1.5 million in the first half of 2014 to €12.7 million in the opening six months of this year, while earnings per share increased from €0.17 to €1.52.
However, ZEAL did see revenue fall from €68.2 million to €25.7 million, while total operating performance also dropped from €71.2 million to €65.5 million.
Reflecting on the results, Dr Helmut Becker, who will replace Dr Hans Cornehl as chief executive from September 1, said the firm is now in a position to pursue further growth.
“We have delivered strong earnings growth in the first half of the year and are on track to achieving our full-year targets.” Becker said.
“The company is well-positioned for further success while we continue to execute on our growth initiative.”
source : www.igamingbusiness.com
