Tipp24 SE: Report on the first nine months of 2014
Nov 13, 2014 7:59 AM
Tipp24 SE / Key word(s): Quarter Results
Tipp24 SE shows stable revenue trend in the first nine months
Compared with the prior-year period, the EBIT margin declined from 24.8 percent to 9.1 percent. Tipp24 however remains confident that the higher expenses in the current year will not lead to a permanent increase of the cost base.
Adjusted for random statistical effects, consolidated revenues reached EUR 98.0 million and thus matched the prior year's level (EUR 97.9 million). The similarly adjusted EBIT amounted to EUR 8.9 million (prior year: EUR 24.3 million).
As a result of the lower operating result and a higher tax rate, consolidated net profit in the first nine months amounted to EUR 1.1 million, well below the previous year's level (EUR 18.4 million). Earnings per share amounted to EUR 0.12 (prior year: EUR 2.24).
Dr. Hans Cornehl, Chief Executive Officer of Tipp24 SE: "After the first three quarters, revenues and earnings are in line with our revised forecast in early August. We are making good progress with the establishment of new businesses. At the end of September for instance, we started GeoLotto, an innovative geographical based online lotto game in the United Kingdom."
After the relocation of the Tipp24 headquarters to London at the beginning of the year, the company is taking the next step in its development by renaming the company ZEAL Network SE. The planned name change reflects the company's wider strategic focus which has expanded over the past few years beyond the original consumer-facing business. If shareholders accept the proposal at the Extraordinary General Meeting in London on 19 November 2014 with the required majority, the new name will come into effect a few days later.
Outlook: Adjusted earnings forecast confirmed for fiscal year 2014
After adjusting its forecast for the full year 2014 in early August due to a comparably weaker first half year and time delays in the ramp-up of new businesses, Tipp24 continues to expect revenue growth to between EUR 135 and EUR 145 million. The company furthermore expects an EBIT of between EUR 15 and EUR 25 million. The stated ranges also take account of statistical fluctuations in payouts for the secondary lottery business.
The complete report on the first nine months of 2014 is available online at
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