Tipp24 SE: Business development in the first half year burdened by seasonal effects and higher costs
Aug 06, 2014 8:10 PM
Tipp24 SE / Key word(s): Half Year Results/Quarter Results
Report on the first six months of 2014
(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.
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