INSPIRED LAUNCHES VIRTUAL SPORTS IN SPAIN WITH LUCKIA

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Innovative Australian horse racing data specialist teams up with the United Kingdom’s leading independent sports entertainment group

Planet Sport and Racing and Sports have today announced the founding of a joint venture partnership. The two sporting businesses from either side of the world have teamed up to support each other in their respective commercial plans to develop and grow new markets for sports media and content.

Australian technology, data and media company Racing and Sports is eager to raise its profile in the United Kingdom and Irish media and gaming markets and has signed an agreement with Planet Sport to leverage its long-standing experience in developing direct-to-consumer and B2B markets.

The partnership will enable ASX-listed Racing and Sports to tap into Planet Sport’s owned and operated network of sports media titles, its audiences and commercial relationships. Racing and Sports meanwhile will offer both Planet Sport B2B clients and end-user consumers the captivating and expert content and data that has brought considerable success in the Australian market.

“The opportunity to provide Racing and Sports best-in-class racing content in collaboration with Planet Sport is an exciting opportunity and we look forward to working with the Planet Sport team headed by Barrie and Mike to open up mutually beneficial opportunities,” the Managing Director for Racing and Sports, Brent Dolan, said.

Planet Sport, a United Kingdom-based sports entertainment and media business, has a rich history of engaging international audiences with engaging content but will hugely benefit from Racing and Sports’ incisive and innovative data, honed across decades of experience serving the competitive Australian sport media market. The first elements of this partnership are now available in the racecards on PlanetSport. com.

Hailing the launch of the partnership, the Betting and Gaming Managing Director for Planet Sport, Mike Grenham, said: “Racing and Sports are market leaders in the provision of horse racing and greyhound data, so we’re delighted to be working with it in this exciting and mutually beneficial partnership. We’re looking forward to developing some truly innovative propositions together and driving both our businesses to even greater heights.”

As part of the venture, Planet Sport is set to utilise its design, UX and tech build know-how to design and develop Racing and Sports’ fresh new United Kingdom and Ireland website. Planet Sport will also be leveraging its team of expert sport journalists to provide editorial content for the site.

Though today marks the first formal partnership, the two businesses are no strangers having collaborated on a variety of betting and gaming projects in recent years. The two businesses now look forward to working in tandem to provide fans with a seamless and exciting racing experience.

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Zeal Network SE (Zeal), the leading German online provider of lottery products, today published its annual report for 2023 and once again presented strong top and bottom-line results. In the past financial year, the company increased its billings in the lottery sector by double digits to €843.3 million (2022: €758.4 million). Revenue also saw double-digit growth to €116.1 million (2022: €105.2 million). EBITDA reached a new five-year high of €32.9 million (2022: €31.7 million) despite a week jackpot environment. In addition, Zeal successfully launched its online games offering, thereby strengthening the basis for further business growth.

• Core business and customer base expanded, market share increased
• Billings and revenue increase by 11% and 10% respectively in 2023 compared to the previous year
• New online games business successfully launched – billings of around € 42 million already achieved

“In 2023, we further expanded our position as market leader,” the Chief Executive Officer for Zeal, Helmut Becker, said. “We are benefiting from our strong brands. Lotto24, for example, has developed into a winner’s factory, producing more record winners last year than any other lottery provider in Germany. Our strong top and bottom-line results and our market share, which has grown to 41.4%, show that we are on the right track. We are, therefore, looking to the future with determination and confidence.”

“The strong growth in our billings and revenue shows that we inspire our customers with our attractive and innovative product range,” the Chief Financial Officer for Zeal, Sebastian Bielski, said. “Our continuously growing customer base also proves that we have expanded our marketing activities in a targeted manner. At the same time, our successful start in the online games business clearly shows that we are in a position to successfully develop new business areas.”

Double-digit increase in revenue and billings in core business:

By increasing customer activity and intensifying marketing measures, the Zeal Group was able to increase lottery billings by 11% to €843.3 million in 2023 (2022: €758.4 million). Revenue from lotteries also rose accordingly by eight percent to €105.7 million (2022: €98.2 million). Adjusted for two major wins in the charity lottery freiheit+ (there were no major wins for this lottery in 2022), revenue from lotteries amounted to €105.7 million. At 12.8%, the gross margin from lotteries adjusted for major winnings was thus almost unchanged from the previous year (2022: 12.9%).

Successful start for online games:

In June 2023, Zeal went live with its online games offering via the web stores of its subsidiary Lotto24 AG and achieved billings of €41.6 million in its first year. Revenue generated with online games amounted to €3.0 million and EBITDA to €1.4 million.

Strong EBITDA despite investment in future growth:

Zeal acquired 597 thousand customers in the past financial year (2022: 703 thousand). The decline compared to the previous year can be attributed to the significantly worse jackpot situation. Due to the company’s strategic decision to invest in brand development through increased television advertising, marketing expenses of €36.0 million (2022: €34.1 million) were six percent higher than in the previous year.

Despite the increased investment in brand development and the launch of online games, EBITDA rose by 4% to €32.9 million (2022: €31.7 million).

The Executive Board and Supervisory Board will propose the payment of a dividend of €1.10 per share (2022: basic dividend of €1.00 per share plus special dividend of €2.60) to the Annual General Meeting on May 28, 2024.

Outlook for 2024:

For the 2024 financial year, Zeal continues to plan to expand its market leadership as an online provider of lottery products, accelerate the growth of the newly-launched games offering and introduce new products in the charity lottery segment. The company expects revenue to be in the range of €140 million to €150 million in the 2024 financial year, assuming average jackpot development. Zeal expects EBITDA to be in the range of €38 million to €42 million.

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Creative and advertising specialists The Tenth Man today announced further international expansion with the opening of a UK office in Farringdon, London.

Increased demand for commercially savvy creative services have led to this significant step forward in the company’s global growth strategy, which brings it closer to clients in the UK’s exciting sports betting market, allowing better service for its international client base.

The Tenth Man was founded in Dublin in 2018 by former Paddy Power advertising director Ken Robertson, who is credited with creating the iconic sports betting brand. Since then, the company has worked with some of the biggest names in the industry, setting a new benchmark in terms of how sportsbooks drive sustainable, marketing-led growth.

Robertson commented: “I originally started The Tenth Man to be the agency I always wanted to work with during my 20 years in sports betting. No one comes close to our category expertise, with almost 50 years of global experience in our management team alone. Our services offer a cure for a long-established lack of agency understanding both from a consumer and a compliance perspective.

“Our roster of international clients including industry giants such as Guinness and Red Bull accounted for more than 50% of our £10 million revenue in 2023. In sports betting, we are creative partners to Fanatics Sportsbook in the US, PointsBet in Australia and Superbet in Europe, so we’re excited to share this unparalleled global experience with clients seeking a fast-paced, compliant creative partner in the UK,” Robertson added.

The London office will be led by Managing Director Gethin Evans, an experienced marketing and media professional with a wealth of expertise in the gambling industry. Evans has an extensive C-level marketing and P&L background in Europe and North America, working on brands such Virgin Bet, Betfair and Racing Post.

Evans said: “Having been client side for many years, repeating the education journey has been a constant frustration. Working with The Tenth Man enables betting operators to work on a different plane – one that can take brands further, faster. The betting and gaming industry in the UK is a mature one, and one that needs to be fully compliant while still engaging and entertaining.

“With that in mind, we can’t wait to push the boundaries for the industry – we produce work that’s creative, commercial and compliant.”

“We’re here to make the spikes spikier – and we’ll do that with a sports betting partner in every regulated market around the world,” Evans added.