Tipp24 AG: German business still negative - foreign growth continues

Aug 03, 2009 10:31 AM

Tipp24 AG / Half Year Results

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Tipp24 AG: German business still negative - foreign growth continues

The first half of the current fiscal year 2009 was dominated by the start
of the Internet ban in Germany introduced by the State Treaty on Gaming.
This removed the basis for the previous operations of Tipp24 AG in Germany.
As a consequence, the company's German segment posted its first negative
half-year EBIT since 2001, amounting to EUR -6.8 million (prior year: EUR
+5.4 million). Revenues of the German segment fell by 92.3 percent to EUR
1.4 million. The EBIT was burdened further by necessary restructuring
measures.

Jens Schumann, Chairman of the Executive Board of Tipp24 AG, states: 'After
being forced to part company with the majority of our German staff in the
first quarter, we also gave up the majority voting rights in our former
English subsidiaries in April as a further consequence of the State Treaty
on Gaming. I am still convinced that key aspects of the State Treaty will
have to be changed. Over the last years, Germany's federal states have lost
over 7 billion euros in stakes from this legislation alone. As this is
money which the states cannot replace, it is now missing for important
institutions in the field of sport, social affairs and culture.'

The pooling of activities in the UK has helped drive the development of the
company's foreign business. This focused expansion of international
operations helped EBIT grow to EUR 29.8 million (prior year: EUR -1.0
million). Revenue generated outside Germany increased from EUR 2.9 million
to EUR 46.0 million.

Consolidated EBIT grew by around EUR 18 million to EUR 22.7 million in the
first six months of the current fiscal year, while the EBIT margin rose by
28.5 percentage points to 48.9 percent. Consolidated net profit improved to
EUR 17.3 million (prior year: EUR 3.5 million). In the period under review,
consolidated revenues grew by 115.9 percent to EUR 46.6 million.

Outlook

The Executive Board expects revenues to rise to at least EUR 85 million for
2009 as a whole. In the same period, operating profit before interest and
tax (EBIT) will reach at least EUR 40 million. The payment of unusually
high or frequent winnings, however, would burden these two figures.

Tipp24 AG will continue its political lobbying in the second half of the
year and utilise all available appeal possibilities to contest those
restrictions of the State Treaty on Gaming which we believe contravene EU
law. Tipp24 AG intends to resume its former business model in Germany as
soon as the legal situation permits such activities.

About Tipp24 AG: Tipp24 AG holds equity interests in a number of companies
in Spain, Italy and the UK, which enable participation in lottery-based
games via the Internet, especially via the websites www.ventura24.es,
www.puntogioco24.it, www.mylotto24.co.uk and www.tipp24.com. In Germany,
the subsidiary Tipp24 Entertainment GmbH operates the games platform
www.tipp24games.de. Shares in Tipp24 AG have been traded at the Frankfurt
Stock Exchange since 2005. In June 2009, the company was admitted to the
SDAX index.


Tipp24 AG       
Kerstin Mork       
Media and Public Relations   
Tel.: +49 40 32 55 33-661     
E-mail: presse@tipp24.de     
Internet: www.tipp24.de/presse/


03.08.2009  Financial News transmitted by DGAP
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Language:     English
Issuer:       Tipp24 AG
              Straßenbahnring 13
              20251 Hamburg
              Deutschland
Phone:        +49 (0)40 325533-0
Fax:          +49 (0)40 325533-77
E-mail:       office@tipp24.de
Internet:     www.tipp24-ag.de
ISIN:         DE0007847147
WKN:          784714
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Hamburg, Stuttgart
 
End of News                                     DGAP News-Service
 
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