Tipp24 AG / Quarter Results

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Report on the first quarter of 2007

(Hamburg, 8 May 2007) In the first quarter of its fiscal year 2007, the
Tipp24 Group raised earnings before interest and taxes (EBIT) by 34.0
percent to around EUR 2.2 million (prior year: 1.6). The EBIT margin was up
4.6 percentage points to 24.7 percent. The Hamburg-based company thus
posted its best-ever quarterly EBIT result.

Billings, revenues and the number of registered customers continued to grow
in the past quarter. Tipp24 therefore succeeded in reaching its targets
even in a quarter without major jackpots – unlike the same period last
year, which included the draw for the second highest jackpot in the history
of German lotteries.

Dr. Hans Cornehl, a member of the Executive Board of Tipp24 AG, commented:
'The development in the period under review also clearly illustrates the
scalability of our business model. Once again, our German activities
accounted for the lion’s share, although the EBIT contribution of our
foreign business segment – EUR 72 thousand in the first quarter of 2007 –
is becoming increasingly significant.'


Dynamic growth course continued

In the first quarter of 2007 the Tipp24 Group raised billings – mainly
remitted stakes – to EUR 68.8 million (prior year: 62.7), representing
year-on-year growth of 9.7 percent.

Revenues – comprising mainly commissions and additional charges – were up
9.4 percent to EUR 8.9 million (prior year: 8.1). German operations
accounted for 86.5 percent of this total.

Gross margin – the ratio of billings to revenues – remained unchanged from
the same period last year at 13.0 percent. The ratio was much higher in the
Group’s 'Abroad' segment, where gross margin reached 23.9 percent, compared
with 12.1 percent for the 'Germany' segment (prior year: Abroad 26.3;
Germany 12.1).

There was a year-on-year increase in registered customers of 404 thousand
to 1,839 thousand (1,434). Of this total, 69 thousand registered customers
were added in the first quarter of 2007 (prior year: 112 thousand).

Consolidated net profit fell to EUR 1.6 million (prior year: EUR 2.2) due
to a one-off tax effect in the prior-year period. In the prior-year quarter
the Group received tax income of EUR 601 thousand from the investment of
liquid funds in reverse convertible transactions.


Development of legal situation

The intensive political and legal discussions concerning Germany’s gaming
market continued in the period under review. From the Company’s point of
view, recent decisions and orders – including those of the administrative
court of Halle, the European Court of Justice and the European Commission –
represent major milestones for a significant strengthening of the position
of private game brokers in Germany.

Jens Schumann, a member of the Executive Board and founder of Tipp24 AG,
states: 'The passing of the present Draft State Treaty would cause
permanent damage to the growing market for the online brokerage of state
lotteries. Against the backdrop of current developments in Germany and the
EU, there is a growing number of politicians who have considerable
reservations about the legality and political common sense of the Draft
State Treaty. It seems that this view is also shared by the capital market,
which has pushed our share price up 41% since the beginning of the year.'


Positive outlook

Tipp24 has confirmed its business forecast for the fiscal year 2007: the
Company plans to stabilize its market share in the dynamic online lottery
market and expects further growth in billings and revenues of around 30
percent – assuming its activities in Germany remain legally permissible.

With regard to the number of registered customers, Tipp24 expects to add a
further 300 to 400 thousand. Due to the scalability of its business model,
the Executive Board of Tipp24 AG expects a similarly strong increase in
EBIT.


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. Subsidiaries of Tipp24 (www.tipp24.de) are
Ventura24 in Spain (www.ventura24.es) and Puntogioco24
(www.puntogioco24.it) in Italy.


Press contact:
Tipp24 AG       
Andrea Fratini       
Head of Media and Public Relations   
Tel.: +49 40 32 55 33-660     
E-mail: presse@tipp24.de     
Internet: www.tipp24-ag.de/presse 




DGAP 08.05.2007 
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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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