Tipp24 SE: Business development in the first half year burdened by seasonal effects and higher costs

Aug 6, 2014 6:10 PM

Tipp24 SE / Key word(s): Half Year Results/Quarter Results

06.08.2014 / 18:10

Report on the first six months of 2014

  • Revenue of EUR 68.2 million - adjusted year-on-year increase of 1.3 percent
  • EBIT of EUR 6.0 million - adjusted EUR 7.1 million
  • Higher costs for the preparation of new business fields
  • Revised earnings guidance for the full year

(London, 6 August 2014) In the first half of 2014, Tipp24 generated revenues of EUR 68.2 million (prior year: EUR 76.4 million). Consolidated EBIT amounted to EUR 6 million and thus fell short of the prior year EBIT of EUR 21.4 million. This was mainly induced by increased personnel and other operating expenses as well as a high winning payout of MyLotto24 Limited of around EUR 6.7 million in March 2014. The EBIT margin declined from 28.1 percent to 8.8 percent.

Adjusted for random statistical effects, consolidated revenues reached EUR 66.6 million and thus exceeded the prior year figure of EUR 65.7 million by 1.3 percent. The increase resulted mainly from the price increases in the German lottery "6 aus 49" which took effect in May 2013. However, towards the end of the second quarter customer activity and thus revenues were negatively affected by the football world championship, which distracted players from participating in lotteries, unusually good weather and a very low frequency of relevant jackpots. The similarly adjusted EBIT amounted to EUR 7.1 million (prior year: EUR 15.6 million) and the EBIT margin to 10.6 percent (prior year: 23.7 percent).

As a result of the lower operating result and a higher tax rate, consolidated net profit in the first half year amounted to EUR 1.5 million, well below the level of the previous year (EUR 15.4 million). Earnings per share amounted to EUR 0.17 (prior year: EUR 1.89).

Dr. Hans Cornehl, Chief Executive Officer at Tipp24 SE: "Even against the backdrop of a seasonally slower business in the first half of the year and time delays in the ramp-up of new business fields, we remain confident to achieve our growth targets for 2014. However, costs will be higher than anticipated in the full year, even if the larger share of these cost increases will not be permanent."

Outlook: Revision of earnings guidance for 2014

On the background of a comparably weaker first half year and time delays in the ramp-up of new businesses, Tipp24 SE adjusts its forecast for the full year 2014. While the company still expects to grow revenues to between EUR 135 and EUR 145 million, it is reducing its EBIT forecast to between EUR 15 to EUR 25 million. The stated ranges also take account of statistical fluctuations in payouts for the secondary lottery business.

Q1-2   2014 2013
Revenue EUR thousand 68.193 76.424
EBIT EUR thousand 5.993 21.441
Net profit EUR thousand 1.529 15.398
(Possible rounding differences due to presentation in EUR thousand)

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

About Tipp24 SE: Tipp24 SE was founded in September 1999 and holds equity interests in a number of companies in Spain and the UK which enable participation in lottery-based games via the Internet, especially via the websites www.ventura24.es, www.mylotto24.co.uk, www.tipp24.com and www.geolotto.co.uk. From its foundation to the current day, Tipp24 has generated stakes of 2.5 billion euros and thus contributed over 650 million euros in taxes and duties. Following its successful IPO in 2005 (Prime Standard), the company was admitted to the SDAX index in June 2009. In July 2012, German online brokerage activities were successfully spun off from Tipp24 SE in the form of the company Lotto24 AG, which is listed separately on the stock exchange. In February 2014, the company successfully completed the relocation of its registered office to the UK, from where it plans to drive the internationalisation of its business activities.

Press contact:
FTI Consulting
Dr. Lutz Golsch
Tel.: +49 (0)69 920 37 110
E-Mail: Lutz.Golsch@fticonsulting.com
Internet: www.tipp24.co.uk/presse/

06.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

281185  06.08.2014