ZEAL Network SE: Subsidiary myLotto24 obtains final annulment of VAT assessment

ZEAL Network SE: Subsidiary myLotto24 obtains final annulment of VAT assessment

(Hamburg, 12 August 2022) myLotto24 Limited, London, United Kingdom, a wholly-owned subsidiary of ZEAL Network SE, has prevailed in the appeal proceedings before the German Federal Fiscal Court (Bundesfinanzhof) regarding the assessment of VAT in relation to its former secondary lottery business. The Federal Fiscal Court has rejected the appeal of the tax authority (Finanzamt) Hannover-Nord against the decision of the Fiscal Court of Hanover (Finanzgericht Hannover) of November 2019 with final effect. The written reasons for the decision are not yet available to myLotto24 Limited.

Repayment by the tax authority of the interim payment of around EUR 54 million made by myLotto24 Limited plus interest of around EUR 1.8 million is expected in the coming weeks.

The payments will have no impact on ZEAL's income statement, as the corresponding receivable was already recognized as other assets.

As a result of the successful conclusion of the tax litigation, ZEAL will have additional free liquidity of around 56 million euros available. We will assess the extent to which it makes sense to use these funds in the coming years for operational purposes, including business expansion. In addition, a distribution to shareholders in the form of dividends or by way of a share buyback program is also possible. Any such measures would be announced separately.

Contact:
Frank Hoffmann
Senior Investor Relations Manager
T: +49 (0)40 809036042
frank.hoffmann@zealnetwork.de