ZEAL announces investment in growth strategy, 2017 guidance, developments in VAT matter and adjusted dividend policy
01/26/2017DGAP-Ad-hoc: ZEAL announces investment in growth strategy, 2017 guidance, developments in VAT matter and adjusted dividend policy
ZEAL Network SE / Key word(s): Forecast/Dividend
26-Jan-2017 / 18:56 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The group has identified several significant growth opportunities in its highly profitable core business. In order to capitalise on these opportunities, marketing investment will be stepped up in the secondary lottery business in 2017 and onwards.
This strategy is anticipated to have a positive impact in the mid-term, with significant growth by 2019. As a result of the planned increase in marketing investment, ZEAL expects an EBIT in the range of EUR 30 to 40 million in the fiscal year 2017 and a total operating performance of EUR 145 to 155 million in the same period.
Separately, ZEAL Network SE has been informed by MyLotto24 Ltd (MyLotto24), a fully consolidated minority shareholding of ZEAL, that it has had initial discussions with the German tax authorities about the classification of certain services of MyLotto24 as so-called Electronically Supplied Services. As part of this process, MyLotto24 expects to receive a VAT assessment from the German tax authorities. However, MyLotto24 is confident that this classification does not apply and expects to successfully challenge any VAT assessed on this basis. As a result, ZEAL does not expect corresponding provisions to be required in the group's accounts.
Also in view of the planned additional investment in marketing, management intends to build up reserves in relation to possible VAT liabilities, despite its stated belief that any such claim would be unsubstantiated. Given the unpredictability of any tax case, ZEAL therefore intends to adjust its current dividend policy. The company intends to declare a dividend in 2017 and onwards amounting to at least EUR 1.00 per share, to be paid in one annual instalment.
26-Jan-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language: English
Company: ZEAL Network SE
5th Floor One New Change
EC4M 9AF London
United Kingdom
Phone: +44 (0)20 3739-7000
Fax: +44 (0)20 3739-7099
E-mail: office@zeal-network.co.uk
Internet: www.zeal-network.co.uk
ISIN: GB00BHD66J44
WKN: TPP024
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
End of Announcement DGAP News Service
26-Jan-2017 / 18:56 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The group has identified several significant growth opportunities in its highly profitable core business. In order to capitalise on these opportunities, marketing investment will be stepped up in the secondary lottery business in 2017 and onwards.
This strategy is anticipated to have a positive impact in the mid-term, with significant growth by 2019. As a result of the planned increase in marketing investment, ZEAL expects an EBIT in the range of EUR 30 to 40 million in the fiscal year 2017 and a total operating performance of EUR 145 to 155 million in the same period.
Separately, ZEAL Network SE has been informed by MyLotto24 Ltd (MyLotto24), a fully consolidated minority shareholding of ZEAL, that it has had initial discussions with the German tax authorities about the classification of certain services of MyLotto24 as so-called Electronically Supplied Services. As part of this process, MyLotto24 expects to receive a VAT assessment from the German tax authorities. However, MyLotto24 is confident that this classification does not apply and expects to successfully challenge any VAT assessed on this basis. As a result, ZEAL does not expect corresponding provisions to be required in the group's accounts.
Also in view of the planned additional investment in marketing, management intends to build up reserves in relation to possible VAT liabilities, despite its stated belief that any such claim would be unsubstantiated. Given the unpredictability of any tax case, ZEAL therefore intends to adjust its current dividend policy. The company intends to declare a dividend in 2017 and onwards amounting to at least EUR 1.00 per share, to be paid in one annual instalment.
26-Jan-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language: English
Company: ZEAL Network SE
5th Floor One New Change
EC4M 9AF London
United Kingdom
Phone: +44 (0)20 3739-7000
Fax: +44 (0)20 3739-7099
E-mail: office@zeal-network.co.uk
Internet: www.zeal-network.co.uk
ISIN: GB00BHD66J44
WKN: TPP024
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
End of Announcement DGAP News Service
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