DGAP-News: Tipp24 SE (english)
Mar 30, 2011 11:31 AM
Tipp24 posts record earnings again in 2010
DGAP-News: Tipp24 SE / Key word(s): Final Results
Tipp24 posts record earnings again in 2010
30.03.2011 / 09:30
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Fiscal year 2010
Tipp24 posts record earnings again in 2010
- First time: sales exceed EUR 100 million - EBIT over EUR 30 million
- Success driven by Abroad segment
- Resumption of German operations at planning stage
(Hamburg, 30 March 2011) Tipp24 SE posted the best result in its history in
fiscal year 2010. Consolidated revenue grew by 16.5% to EUR 104.4 (prior
year: 89.6) million - thus exceeding EUR 100 million for the first time.
Consolidated earnings before interest and taxes (EBIT) climbed to EUR 30.3
(23.1) million, corresponding to growth of 31.3%. Consolidated net profit
rose to EUR 19.6 (17.5) million. As a result, earnings per share amounted
to EUR 2.53 (2.26). Available funds at the end of the year amounted to EUR
90.9 million.
The company easily exceeded its most recent forecasts for fiscal 2010. In
August 2010, Tipp24 downgraded its original forecast for consolidated
revenue from EUR 100 million to EUR 90 million and for EBIT from EUR 40
million to EUR 20 million.
In the Abroad segment, there was strong growth in revenue to EUR 103.7
(88.5) million and a corresponding rise in EBIT to EUR 40.2 (32.7) million.
Revenue in Germany reached EUR 3.1 (3.3) million. As a result, EBIT in the
Germany segment amounted to EUR -8.8 (-11.3) million. Tipp24 SE had to bear
considerable running costs in Germany, mainly for administration and legal
advice. Earnings were also burdened by start-up losses in the Skill Based
Games division. Business activities in Germany are still heavily restricted
by the State Treaty on Games of Chance (Glücksspiel-Staatsvertrag -
GlüStV).
Dr. Hans Cornehl, CEO of Tipp24 SE, states: 'The Abroad segment once again
more than compensated for the negative effects of the GlüStV in Germany
during 2010. After being forced to discontinue our German business in 2009,
the excellent overall development of business proves once more that Tipp24
is capable of generating reliable results in a frequently changing
environment. In view of the current political signals, it appears realistic
that we can soon return to the German market with a long-term perspective
for the future.'
Significant regulations of German State Treaty on Games of Chance not
applicable according to ECJ
Tipp24 SE is planning a swift return to the German market. In September
2010, the European Court of Justice (ECJ) had questioned Germany's monopoly
regulations as they were neither coherent nor systematic. The regulations
for dangerous games, such as commercial gambling machines, are much more
relaxed than for harmless lotteries such as 'Lotto 6 from 49'. It would be
more coherent to regulate various gaming offers according to their
potential dangers.
The ECJ's doubts have since been confirmed by Germany's Federal
Administrative Court and Federal Supreme Court. The verdicts of several
recent principal proceedings in Germany have confirmed that as far as
lotteries are concerned, in particular the obligation of brokers to seek
permission from federal states, the prohibition of online gaming and the
restriction and prohibition of advertising are all not applicable. The
country's federal states are currently discussing changes to the GlüStV;
the Minister Presidents will convene again in April for an extraordinary
conference.
Dr. Cornehl: 'The aim must be to create sensible and forward-looking
conditions for the online brokerage of harmless lotteries, also on the
Internet.' A new, systematic and coherent State Treaty would mean that
taxes and special-purpose duties which the German states have lost as a
result of the current State Treaty, could finally be used once more for
social and cultural institutions, as well as for popular sports. Tipp24 SE
aims to make its own contribution again as soon as possible.
'Justifying the current lottery monopoly with the prevention of gambling
addiction is neither credible nor necessary. There simply is no such thing
as lottery addiction,' says Dr. Cornehl. This was proven by an enquiry
conducted by the Administrative Court of Halle, amongst others, which
questioned all guardianship courts and around 100 addiction clinics in
Germany with regard to the relevance of lotteries for gambling addiction.
Outlook
For its fiscal year 2011, Tipp24 expects revenue and EBIT to reach at least
the level of last year: EUR 104 million and EUR 30 million, respectively.
This forecast takes into consideration uncertainties regarding negative
statistical fluctuations and increased costs for re-establishing business
in Germany of up to EUR 10 million.
Fiscal year Q.I-IV 2010 2009
Revenues EUR thsd. 104,370 89,551
- Germany EUR thsd. 3,125 3,256
- Abroad EUR thsd. 103,733 88,537
EBIT EUR thsd. 30,258 23,052
- Germany EUR thsd. -8,808 -11,344
- Abroad EUR thsd. 40,202 32,708
Net profit EUR thsd. 19,551 17,482
(Rounding differences possible due to presentation in EUR thousand)
Press contact:
Tipp24 SE
Andrea Fratini
Head of Media and Public Relations
Tel.: +49 40 32 55 33-660
E-mail: presse@tipp24.de
Internet: www.tipp24-se.de/presse/
About Tipp24 SE: Tipp24 SE (formerly Tipp24 AG) was founded in September
1999 and holds equity interests in a number of companies in Spain, Italy
and the UK, which enable participation in lottery-based games via the
Internet, especially via the websites www.ventura24.es, www.giochi24.it,
www.mylotto24.co.uk and www.tipp24.com. In Germany, Tipp24 Entertainment
GmbH operates the games platform www.tipp24games.de. From its foundation to
the end of 2008, Tipp24 SE brokered tickets worth over 1.5 billion euros to
the state lottery companies - in recent years over 330 million euros
annually. Following its successful IPO in 2005 (Prime Standard), the
company was admitted to the SDAX index in June 2009 and has been trading as
a European public limited company since December 2009.
End of Corporate News
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Language: English
Company: Tipp24 SE
Straßenbahnring 11
20251 Hamburg
Deutschland
Phone: +49 (0)40 325533-0
Fax: +49 (0)40 325533-77
E-mail: office@tipp24.de
Internet: www.tipp24-se.de
ISIN: DE0007847147
WKN: 784714
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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117546 30.03.2011
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