Tipp24 AG: Adjustment of annual forecast

Oct 6, 2006 9:59 AM

Tipp24 AG / Profit Warning



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.
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Contrary to previous expectations, Tipp24 AG no longer currently expects
the “ExtraLotto” New Year’s Eve lottery to be held again this year.
According to the company’s estimations, this will have a significant
negative effect on the expected growth of revenues and earnings of the
Tipp24 Group in its current fiscal year.

However, the company further expects that the ongoing, unusually long
jackpot phase – which has led to the current record jackpot of € 35 million
– will largely compensate for this negative effect on revenue growth.
Tipp24 AG has utilized the current favorable conditions to make a targeted
and cost-effective acquisition of new customers. Due to the proportionately
higher increase in marketing expenses compared with revenues, the company
expects a short-term, additional reduction in EBIT margin during the
current fiscal year, as earnings from newly acquired customers in the
remaining three months of this year are unlikely to compensate for the cost
of acquiring such customers.

On the basis of the above-mentioned effects, Tipp24 AG has therefore
corrected its forecast of a 50% year-on-year increase in EBIT for the
current year as a whole, as made in its half-year report. The company now
expects EBIT to be well below the previously forecast level for fiscal year
2006 and to be only slightly up on the prior-year EBIT figure of € 6.0
million.

With regard to sales revenues for fiscal year 2006, however, Tipp24 AG
still expects to achieve an increase of 30 to 40% over the previous year’s
figure of € 26.1 million. Equally, the expected number of registered new
customers in 2006 remains at between 300 and 400 thousand.





DGAP 06.10.2006 
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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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