Tipp24 expects legal dispute with jackpot insurer - annual forecast adjusted

Jan 26, 2010 9:46 AM

Tipp24 SE / Legal Matter/Profit Warning

26.01.2010 

Dissemination of an 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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MyLotto24 Ltd., a fully consolidated minority shareholding of Tipp24 SE,
has been informed by its insurer that it is refusing to pay out the
insurance claim in connection with the jackpot winnings of one of their
game participants in autumn 2009. In the draw on 23 September 2009, a
player won the record jackpot amount of around EUR 31.7 million.

MyLotto24 Ltd. considers the insurance company's refusal to pay to be a
breach of contract and intends to commence legal proceedings for payment of
the full insurance sum of around EUR 21.7 million. Moreover, MyLotto24 Ltd.
plans to swiftly replace its existing insurance cover.

Irrespective of Tipp24 SE's view that MyLotto24 Ltd. has a valid claim
against the insurance company, the refusal to pay means that at the level
of the consolidated annual financial statements of Tipp24 SE, the insurance
amount may no longer be carried in the consolidated balance sheet and
income statement.

As a result, Tipp24 SE has adjusted its forecast for fiscal year 2009 and
now expects consolidated operating earnings before interest and taxes
(EBIT) of at least EUR 21 million and a total operating performance of at
least EUR 73 million. Revenue is not affected by the adjustment. Despite
payment of the jackpot winnings in October 2009, consolidated cash and cash
equivalents were increased to over EUR 81 million as at the end of 2009
(prior year: EUR 66 million).


26.01.2010  Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Tipp24 SE
              Straßenbahnring 11
              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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