Correction: Tipp24 AG continues growth story

Nov 06, 2006 11:33 AM

Tipp24 AG / Quarter Results



Announcement transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Correction on behalf of the Issuer:

Time of publication of the original press release: 06 November, 2006, 08:06
a.m.

The description of the figures has been changed (no figures modification).

The complete corrected press release is as follows:



Report on the first 9 months of 2006

Tipp24 AG continues growth story 

  - EBIT January–September up 21.2 percent to EUR 5.1 million (prior year:
    4.2)

  - Leap in earnings and revenues due to record jackpot in third quarter

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

In the first nine months of fiscal 2006, earnings before interest and taxes
(EBIT) improved to EUR 5.1 million (prior year: 4.2), representing an
increase of 21.2 percent. Due to a non-recurring tax effect, there was a
disproportionately strong increase in net profit of almost 150 percent to
EUR 5.7 million (prior year: 2.3).

In the third quarter alone, EBIT reached EUR 2.1 million (prior year: 1.5)
– an increase of 45.0 percent. This is the highest quarterly EBIT result in
the company’s history. Over the same period, net profit improved by as much
as 85.3 percent to EUR 1.5 million (prior year: 0.8).

For the nine-month period, total marketing expenses increased to 33.9
percent of revenues (prior year: 27.4) due to high spending on new customer
acquisition during the unusually high jackpot period in September and as a
result of growth in the Business Service segment. As a result, the EBIT
margin of 21.0 percent (prior year: 22.5) was slightly down on the previous
year.

Revenues – comprising mainly commissions and additional charges – were up
29.9 percent to EUR 24.3 million (prior year: 18.7) in the first nine
months. Billings grew to EUR 186.4 million (prior year: 149.1) – an
increase of 25.0 percent. These growth rates were primarily due to the
record 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. This exceptional jackpot enabled Tipp24 to gain over 100,000
new customers in the first week of October alone (4th quarter).

On the assumption that the current legal conditions remain unchanged,
Tipp24 AG expects to attract 300,000 to 400,000 new customers per year and
raise billings and revenues by 30 to 40% p.a. in each of the next two
years.

Tipp24 also expects EBIT for fiscal 2006 to slightly exceed the prior-year
EBIT figure of 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 (www.tipp24.de) are Ventura24 in Spain
(www.ventura24.es) and Puntogioco24 (www.puntogioco24.it) in Italy.

 

Key figures for the third quarter 2006


Q.III (in € million)              2006          2005          Change
Billings                                69.0          50.7         36.1%
- Germany                               65.2          48.0         35.7%
- Abroad                                 3.8           2.6         44.0%
Revenue                                  9.0           6.6         36.9%
- Germany                                8.0           5.9         35.7%
- Abroad                                 1.0           0.7         47.8%
Operating expenses                       6.9           5.2         32.7%
EBITDA                                   2.3           1.6         40.6%
EBIT                                     2.1           1.5         45.0%
EBT                                      2.5           1.5         65.1%
Net profit                               1.5           0.8         85.3%
Q.I-III (in € million)            2006          2005          Change
Billings                               186.4         149.1         25.0%
- Germany                              175.0         143.5         21.9%
- Abroad                                11.4           5.6        104.9%
Revenue                                 24.3          18.7         29.9%
- Germany                               21.3          17.2         23.6%
- Abroad                                 3.0           1.5        101.3%
Operating expenses                      18.7          14.1         32.9%
EBITDA                                   5.6           4.7         20.6%
EBIT                                     5.1           4.2         21.2%
EBT                                      5.7           4.4         30.2%
Net profit                               5.7           2.3        149.6%



Press Contact 

Tipp24 AG 

Andrea Fratini 

Head of Media and Public Relations

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

E-mail: presse@tipp24.de

Internet: www.tipp24.de/presse/ 






DGAP 06.11.2006 
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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
WWW:          www.tipp24-ag.de
ISIN:         DE0007847147
WKN:          784714
Indices:      
Listed:       Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
              Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart
 
End of News                                     DGAP News-Service
 
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