Tipp24 AG: dynamic growth unbroken
Aug 6, 2007 10:27 AM
Tipp24 AG / Half Year Results/Interim Report Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Press Release Report on the first half-year 2007 Tipp24 AG: dynamic growth unbroken (Hamburg, 6 August 2007) The Tipp24 Group continued its dynamic growth course in the first half of its fiscal year 2007: billings (+ 18.9 percent) and revenues (+ 17.1 percent) grew strongly during the reporting period. Due to special items, there was a fall in EBIT of 21.6 percent. Non-recurring expenses of EUR 1.4 million incurred in connection with the Group’s acquisition strategy were eliminated with an effect on earnings. There was also a one-off personnel expense of EUR 0.35 million. Without these one-off effects, EBIT would have grown by 37.3 percent. The development of revenues and EBIT was once again influenced strongly by the company’s German operations in the reporting period. Strong growth in billings and revenues Over the last twelve months, the number of registered customers grew by 420 thousand to EUR 1.9 million. Compared with the balance sheet date, new registered customers rose by 136 thousand. Billings – mainly remitted stakes – increased to EUR 139.6 (117.4) million, representing year-on-year growth of 18.9 percent. Revenues – consisting mainly of commissions and additional fees – rose by 17.1 percent to EUR 18.0 (15.3) million. German operations accounted for 87.2 percent of this total. Consolidated net profit fell by 52.8 percent to EUR 2.0 million due to a positive one-off tax effect in the prior-year period and the above mentioned special items. Legal position strengthened The intensive political and legal discussions concerning Germany’s gaming market continued in the period under review. From the Company’s point of view, the decisions and orders of the administrative court of Halle, the EU Commission, the Regional Appeal Court of Düsseldorf and the recent suspension order of the administrative court of Stuttgart can all be regarded as positive signals. They significantly strengthen the view of Tipp24, that political bodies will find it hard to restrict the growing market for online lottery brokerage against valid law and political common sense. Jens Schumann, a member of the Executive Board and founder of Tipp24 AG, states: 'The passing of the present Draft State Treaty would cause permanent damage to the growing market for the online brokerage of state lotteries. Against the backdrop of current decisions in Germany and the EU, there is also a growing number of politicians who have considerable reservations about the legality and political common sense of the Draft State Treaty.' Outlook Tipp24 AG confirms its growth plans for the remaining months of its fiscal year 2007: the company plans to gain around 300 thousand customers in the current year. This forecast takes account of the chance omission of high jackpots in the first half of the year. Against this backdrop, Tipp24 expects to raise billings and revenues by just under 20 percent. Due to the scalability of our business model, we expect a strong increase in our EBIT result – adjusted for the above mentioned special items totalling EUR 1.8 million. Even including these items we expect to post a higher EBIT result than in the previous year. About Tipp24 AG: Tipp24 was established in 1999 and is now the market leader for lottery products in the Internet on the basis of billings. The company has succeeded in achieving impressive growth rates right from the start. Almost all state lottery products are supplied. It only takes a few mouse clicks to buy a lottery ticket – round the clock, quickly and anonymously. The ticket receipt is kept safely, winners are notified about their prizes automatically by text message and e-mail and prizes are credited automatically. Subsidiaries of Tipp24 (www.tipp24.de) are Ventura24 in Spain (www.ventura24.es) and Puntogioco24 (www.puntogioco24.it) in Italy. Half-year comparison Q.I-II 2007Q.II Q.I-II 2007 Q.I-II 2006 Change Billings € thousand 139,583 117,355 + 18.9% - Germany € thousand 130,083 109,704 + 18.6% - Abroad € thousand 9,501 7,651 + 24.2% Revenue € thousand 17,958 15,329 + 17.1% - Germany € thousand 15,657 13,302 + 17.7% - Abroad € thousand 2,301 2,027 + 13.5% Operating expenses € thousand - 15,205 - 11,960 + 27.1% EBITDA € thousand 2,753 3,370 - 18.3% EBIT € thousand 2,358 3,007 - 21.6% EBT € thousand 3,444 3,218 + 7.0% Net profit € thousand 1,987 4,208 - 52.8%(Rounding differences due to presentation of figures in Euro thousand) Press contact: Tipp24 AG Andrea Fratini Head of Media and Public Relations Phone: +49 40 32 55 33-660 Fax: +49 40 32 55 33-5600 E-mail: presse@tipp24.de Internet: www.tipp24.de/presse/ DGAP 06.08.2007 ---------------------------------------------------------------------- Language: English Issuer: Tipp24 AG Straßenbahnring 11-13 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: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------