The closing month of November marks a pivotal moment for Zeal as the company announces the departure of Sönke Martens from its executive board, effective immediately. Martens, whose tenure was central to the operations of the group, made the decision to not extend his board contract, set to expire at the end of June 2024. Instead, he will continue to make contributions to Zeal until February of the same year, ensuring his duties and responsibilities are transitioned smoothly to his successors.
Martens, a fixture at Zeal since June 2014, has worn many hats during his time at the firm. His career saw him navigate through roles in different segments such as eSailors, Lotto24, and Tipp24 before stepping into the position of COO for the group in July 2021. His expertise was not confined to Zeal; prior to his commitments with the company, Martens was at the helm of his real estate venture Loftville.com and also sharpened his skills with XING, Roland Berger Strategy Consultants, and HSH Nordbank.
The exit of Martens carries with it a significant restructuring of Zeal’s executive board. As of December 1, the board will operate with a streamlined composition of three members – CEO Helmut Becker, the newly appointed Chief Financial Officer Sebastian Bielski, and Chief Technology Officer Paul Dingwitz. This change comes in the wake of the group’s continuous effort to optimize its management team.
CEO Becker offered a poignant acknowledgment of Martens’ contributions, expressing his regret at the decision but also a deep sense of gratitude for the ingenuity and drive Martens instilled in the company. Becker highlighted Martens’ pivotal role in orchestrating the most ambitious marketing campaign in Lotto24’s history and his strategic leadership that fueled a tripling of billings in their core business. Martens’ vision is lauded for the successful amalgamation of Lotto24 and Tipp24, and his astuteness facilitated a noteworthy elevation in customer lifetime values and customer acquisition strategies.
The announcement of Martens’ forthcoming exit comes hot on the heels of another high-level departure from Zeal, with former Chief Financial Officer Jonas Mattsson also choosing not to renew his contract after an eight-year tenure, stepping down as of September 30 to dedicate more time to his family. Mattsson’s role was filled by Bielski, who transitioned into the financial leadership position at Zeal after a tenure at solar power company Energiekonzepte Deutschland that commenced in December 2022. Mattsson’s influence also extended as CFO of the Lotto24 segment, with Andrea Behrendt, currently Vice-President for Group Controlling at Zeal, succeeding him in an interim capacity until March 2024.
Martens’ scheduled departure coincides with the company revealing its year-to-date results, which, despite a marked increase in marketing expenses, demonstrated robust income and earnings growth for the nine months to September 30. With billings soaring by 16% to €633.2 million and revenue climbing by the same margin to €86.0 million, Zeal’s financial prowess remains unabated. The company’s gross margin hovered close to the prior year’s, reaching 12.5%, and even with intensified marketing investments, EBITDA rose by 5% to €23.2 million. Nevertheless, the after-tax result dipped to €10.1 million from last year’s €12.1 million, illustrating some of the challenges faced in a fiercely competitive market.
In summarizing the financial performance and executive movements, it’s clear that Zeal is at a crossroads of transformation and growth. As the group prepares to bid farewell to a key executive player, it simultaneously braces for a future where the ambition is matched by the expertise of the remaining leadership and the strategic vision that has come to define its trajectory.
