Report on the first 9 months of 2006

Nov 6, 2006 9:06 AM

Tipp24 AG / Quarter Results

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Press Release

Report on the first 9 months of 2006

Tipp24 AG continues growth story 

  - Leap in revenues in third quarter

  - Positive outlook

(Hamburg, 6 November 2006) In a difficult legal environment dominated by
intensive discussions about the future of Germany’s gaming market, Tipp24
AG succeeded in continuing its positive development.

In the first nine months of fiscal 2006, billings grew by 25.0 percent over
the same period last year, from EUR 149.1 million to EUR 186.4 million.
Revenues – comprising mainly commissions and additional charges – were up
29.9 percent, from EUR 18.7 million to EUR 24.3 million. These extremely
strong growth rates were primarily due to a record 'Lotto” jackpot, which
already stood at EUR 27 million at the end of September and reached an
all-time high of EUR 35 million in the first week of October. As a result
of this exceptional jackpot, Tipp24 was able to gain over 100,000 new
customers in the first week of October alone (Q4).

In the first nine months of fiscal 2006, earnings before interest and taxes
(EBIT) improved by 21.2 percent, from EUR 4.2 million to EUR 5.1 million.
Due to a non-recurring tax effect, there was a disproportionately strong
increase in net profit of almost 150 percent from EUR 2.3 million to EUR
5.7 million. High spending on new customer acquisition during the
exceptionally high jackpot period and expansion of the Business Service
segment, however, resulted in an increase in total marketing expenses to
33.9 percent of revenues, compared with 27.4 percent in the same period
last year. As a result, Tipp24’s extremely high EBIT margin of 21.0 percent
was slightly down on the prior-year figure.

On the assumption that the current legal conditions remain unchanged,
Tipp24 AG expects to attract 300 to 400 thousand new customers per year and
raise billings and revenues by 30 to 40% p.a. in each of the next two
years. Moreover, Tipp24 expects EBIT for fiscal 2006 to slightly exceed the
prior-year figure (2005: EUR 6.0 million).

Jens Schumann, a member of the Executive Board and founder of Tipp24 AG,
states: 'In the first nine months of 2006, Tipp24 consistently pursued its
successful business model – despite the continuing debate about possible
legal restrictions. A variety of parties have already documented their
doubts as to the legality of the current draft State Treaty on Gaming with
regard to constitutional, antitrust and EU legislation. We do not therefore
expect Germany’s legislators to act against valid law and political common
sense by restricting this growing market. The consequence would be a
situation in which everybody loses: lottery players would lose their
'Lotto”, numerous companies would lose the basis for their business and the
state would lose revenues of almost EUR 1 billion, which it uses for sport,
culture and social affairs.”


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. No extra charge is made for this service.
Subsidiaries of Tipp24 ( are Ventura24 in Spain
( and Puntogioco24 ( in Italy.

Key figures for the third quarter 2006

Q.III (in € thousand)             2006          2005          Change
Billings                              69,006        50,693         36.1%
- Germany                             65,247        48,082         35.7%
- Abroad                               3,759         2,611         44.0%
Revenue                                9,014         6,584         36.9%
- Germany                              8,015         5,908         35.7%
- Abroad                                 999           676         47.8%
Operating expenses                     6,930         5,221         32.7%
EBITDA                                 2,273         1,617         40.6%
EBIT                                   2,108         1,454         45.0%
EBT                                    2,509         1,520         65.1%
Net profit                             1,510           815         85.3%
Q.I-III (in € thousand)           2006          2005          Change.
Billings                             186,362       149,073         25.0%
- Germany                            174,952       143,505         21.9%
- Abroad                              11,410         5,568        104.9%
Revenue                               24,344        18,746         29.9%
- Germany                             21,318        17,243         23.6%
- Abroad                               3,026         1,503        101.3%
Operating expenses                    18,701        14,068         32.9%
EBITDA                                 5,643         4,679         20.6%
EBIT                                   5,116         4,220         21.2%
EBT                                    5,727         4,397         30.2%
Net profit                             5,718         2,291        149.6%

Press Contact 

Tipp24 AG 

Andrea Fratini 

Head of Media and Public Relations

Tel.: +49 (0)40 32 55 33 - 660     



DGAP 06.11.2006 
Language:     English
Issuer:       Tipp24 AG
              Straßenbahnring 11-13
              20251 Hamburg Deutschland
Phone:        +49 (0)40 325533-0
Fax:          +49 (0)40 325533-77
ISIN:         DE0007847147
WKN:          784714
Listed:       Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
              Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart
End of News                                     DGAP News-Service