Tipp24 SE: Report on the first nine months of 2014

Nov 13, 2014 7:59 AM

Tipp24 SE / Key word(s): Quarter Results

13.11.2014 / 07:59

Tipp24 SE shows stable revenue trend in the first nine months

  • Revenues of EUR 105.4 million - adjusted on prior-year level
  • EBIT of EUR 11.1 million - adjusted EUR 8.9 million
  • Planned name change to ZEAL Network SE reflects the company's wider strategic focus

(London, 13 November 2014) Tipp24 SE reported a stable revenue development in the first nine months of the current fiscal year while the company continued to significantly invest in new business fields. The company slightly increased its consolidated revenues in the reporting period to EUR 105.4 million (prior year: EUR 104.4 million). Consolidated EBIT decreased considerably to EUR 11.1 million year-on-year (prior year: EUR 26.2 million). This was mainly induced by increased personnel and other operating expenses in the context of building up new business fields, higher marketing expenses and increased hedging costs as well as consulting fees for the renewal of the hedging structure.

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.

Q1-3   2014 2013
Revenue EUR thousand 105,414 104,371
EBIT EUR thousand 11,134 26,191
Net profit EUR thousand 1,115 18,392
(Possible rounding differences due to presentation in EUR thousand)

The complete report on the first nine months of 2014 is available online at

About Tipp24 SE:
Tipp24 SE is a holding company specialized in the area of online lottery. We offer consumer facing lottery-based games as well as business to business solutions. Our vision is to create a better world of lottery. Tipp24 SE is a London based company, founded in Germany in 1999. Its shares are listed on the Prime Standard of the Frankfurt Stock Exchange and are included in the SDAX index. To the current day Tipp24 SE has generated stakes of 2.5 billion euros and thus contributed over 650 million euros in taxes and duties. Tipp24 SE holds equity interests in businesses running under the following brands: Lottovate offers digital services to licenced lottery operators around the world (www.lottovate.com). Lotto Network enables private business partners to host their own branded lotto product (www.lottonetwork.com). Geolotto is an innovative geographical based lotto game in the UK (www.geolotto.co.uk). Ventura24 is a lottery ticket broker in Spain (www.ventura24.es). Tipp24 offers consumer facing secondary lottery products (www.tipp24.com).

Press contact:
Tipp24 SE
Press Office
Tel.: +44 (0)20 3739-7000
E-Mail: media@tipp24.co.uk
Internet: www.tipp24.co.uk

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