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. ---------------------------------------------------------------------- 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 ---------------------------------------------------------------------- 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 ---------------------------------------------------------------------------