Tipp24: Stable development of business

May 06, 2010 8:59 AM

Tipp24 SE / Quarter Results

06.05.2010 06:59

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Press release

Report on the first quarter of 2010

Tipp24: Stable development of business 
Fight for resumption of business in Germany continues

(Hamburg, 6 May 2010) In the first three months of fiscal 2010,
consolidated revenues amounted to EUR 24,991 thousand. The reduction of
14.9 percent compared to the same period last year (EUR 29,355 thousand)
resulted mainly from a positive special item in the first quarter of 2009,
in which the second-highest jackpot in Germany Lotto history led to a very
high gaming volume while marketing costs remained extremely low.
In addition, within the framework of usual statistical fluctuations for the
organisation of secondary lotteries, winnings of EUR 4.9 million were paid
out above the statistic average in the first quarter of 2010. EBIT fell
from EUR 14,635 thousand to EUR 8,063 thousand. The EBIT margin was reduced
to 32.3 (49.9) percent. Consolidated net profit fell to EUR 5,324 (11,869)
thousand in the first quarter of 2010.
In the Germany segment, revenues amounted to EUR 835 (725) thousand in the
first three months of the current fiscal year, while EBIT improved to EUR
-1,855 (-3,077) thousand.
Revenues generated by the Abroad segment fell to EUR 24,811 (29,022)
thousand while the respective EBIT figure decreased to EUR 9,396 (17,912)
thousand.

Legal conditions in Germany
Tipp24 continues to fight in the courts for the resumption of business in
its domestic German market and plans to utilise all available appeal
possibilities. Moreover, the company is still lobbying for a political
solution in line with market requirements.
Dr. Hans Cornehl, Executive Board member of Tipp24 SE, comments: 'The
German State Treaty on Gaming has brought nothing but misery. The revenues
of completely harmless lotteries have collapsed, thousands of legal
proceedings are blocking the courts and the alleged 'lottery addiction' has
long since been scientifically disproved. It is time for politicians to
take action.'
The German Lottery Association estimates that a total volume of at least
EUR 11 billion will be lost in the period up to the end of 2011 as a direct
consequence of the State Treaty on Gaming (GlüStV). This corresponds to tax
and duty revenue of around EUR 5 billion, which will no longer be available
to support important social projects, sport and culture.
Several thousand administrative and anti-trust proceedings have already
been brought against the GlüStV by various market participants since it
came into effect. This reflects the obvious illegality of the legislation.
The EU Commission also confirmed in February that it would continue the
infringement proceedings already instituted against the German gaming laws.

Forecast for 2010 confirmed
Tipp24 SE confirms its forecast for the current fiscal year. Tipp24 expects
that revenues will increase to at least EUR 100 million and that EBIT will
reach at least EUR 40 million. Statistically unusually high or frequent
game winnings, however, would also dampen expectations with regard to
revenue and EBIT.

About Tipp24 SE: Tipp24 SE 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 has brokered tickets worth over 1.5 billion euros to the state lottery
companies - in recent years over 330 million euros annually. Shares in
Tipp24 SE have been traded in the Prime Standard segment of the Frankfurt
Stock Exchange since 2005. In June 2009, the company was admitted to the
SDAX index.


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/  





06.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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-ag.de
ISIN:         DE0007847147
WKN:          784714
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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