Tipp24 AG: Sales and earnings in Germany collapse - Growth abroad

May 28, 2009 7:28 AM

Tipp24 AG / Quarter Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

Due to the considerable legal restrictions imposed by the German State
Treaty on Gaming and the resulting significant cost of winding up the
company's core business in Germany, EBIT from German operations was well
down on the previous year at EUR -3,077 thousand (prior year: EUR 3,158
thousand). Thanks to the much stronger focus placed on expanding
international business, however, EBIT for the 'Abroad' segment was well
above the prior-year figure at EUR 17,912 thousand (prior year: EUR -576
thousand). As a result, consolidated EBIT of Tipp24 AG and its investments
grew from EUR 2,687 thousand last year to EUR 14,635 thousand in the first
three months of fiscal 2009. The EBIT margin rose by 34.5 percentage points
to 58.1 percent. Consolidated net profit for the period increased from EUR
1,876 thousand to EUR 11,869 thousand. Revenues rose by 121.7 percent to
EUR 25,209 thousand (prior year: EUR 11,373 thousand).

There is still considerable legal uncertainty in the company's previous
core market, Germany. At the same time, planning certainty in the Abroad
segment is comparatively low as yet especially for the new business
activities. It is therefore impossible to make a reliable forecast for
revenues and earnings at this moment in time. The company expects to be
able to make a reliable forecast again in the medium term once the legal
situation has been settled as far as possible and more experience has been
gained outside Germany.
28.05.2009  Financial News transmitted by DGAP
Language:     English
Issuer:       Tipp24 AG
              Straßenbahnring 11-13
              20251 Hamburg
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
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News                                     DGAP News-Service