Tipp24 SE: Successful start to the year in Q1 2011

May 6, 2011 9:01 AM

Tipp24 SE / Key word(s): Quarter Results

06.05.2011 / 09:01

Press release

Report on the first quarter of 2011

Tipp24 SE: Successful start to the year in Q1 2011

- EBIT growth of 40 percent to EUR 11.3 million

- Well equipped for return to German market

- Foundation laid for further sustainable growth in Germany and abroad

(Hamburg, 6 May 2011) After once again posting record earnings in fiscal 2010, the first quarter of 2011 was also highly successful for Tipp24 - especially against the backdrop of balanced statistical effects for the operation of secondary lotteries in the Abroad segment. Consolidated revenue increased by 37.1 percent to EUR 34.3 (prior year: 25.0) million. Earnings before interest and taxes (EBIT) grew by 40.0 percent from EUR 8.1 to EUR 11.3 million. Consolidated net profit rose to EUR 7.6 (5.3) million, corresponding to growth of 41.9 percent. The EBIT margin was up 0.6 percentage points to 32.9 (32.3) percent. Earnings per share increased to EUR 0.95 (0.70).

The success of Tipp24 SE in the first quarter of 2011 was once again driven by the Abroad segment. Revenue rose to EUR 34.1 (24.8) million, while EBIT improved significantly to EUR 13.6 (9.4) million.

Revenue in Germany reached EUR 0.9 (0.8) million in the period under review. Due to the significant regulatory restrictions imposed on lottery activities and start-up losses in the Skill Based Games division, the Germany segment posted an EBIT result of EUR -1.9 (-1.9) million.


Legal market situation in Germany - Obligation to seek permission for online lottery brokerage and advertising bans not applicable

In view of recent court rulings in Germany and the current political signals, a permanent return to the German market now appears imminent. The Federal Supreme Court and Federal Administrative Court have since underlined the doubts expressed by the European Court of Justice (ECJ), which questioned Germany's monopoly regulations in September 2010 as they appeared neither coherent nor systematic.

In several principal proceedings in recent months, German courts have ruled that for the field of lotteries the requirement to seek permission for brokerage from the respective federal states, the Internet ban and the advertising restrictions and prohibitions are inapplicable. The states are currently discussing possible amendments to the State Treaty on Games of Chance. The state premiers will reconvene on 9 June to discuss the matter.

The company has repeatedly stressed that the aim must be to create sensible and future-oriented market conditions for the brokerage of harmless lotteries, also via the Internet. Dr. Hans Cornehl, CEO of Tipp24 SE, states: 'With regard to the organisational, technological and financial requirements, Tipp24 SE is well equipped to make a swift return to the German market. Over the past few months, our activities have focused on preparations for the resumption of business.'


Further sustainable growth planned for Germany and abroad - Two additional members for the Executive Board

The company has also laid the foundation for future sustainable growth: in view of the national and international challenges ahead, the Supervisory Board of Tipp24 SE has resolved to expand the Executive Board with the addition of two further members. The former Executive Board members Marcus Geiss and Petra von Strombeck, who left the Executive Board in late March 2009 following the introduction of regulatory restrictions, will return to Tipp24 SE in their old positions as of 1 July 2011.


Forecast for 2011 confirmed

Tipp24 SE confirms its forecast for the current fiscal year. For fiscal year 2011, Tipp24 expects revenue and EBIT to reach at least the level of last year: EUR 104 million revenue and EUR 30 million EBIT. This forecast takes into consideration uncertainties regarding negative statistical fluctuations and increased costs for re-establishing business in Germany of up to EUR 10 million.

The complete quarterly report is published on the website of Tipp24 SE in the Investor Relations section: https://www.tipp24-se.de/.


Quarter comparison: Q1 2011/2010

in EUR thsd. Q1 / 2011 Q1 / 2010
Revenue 34,274 24,991
- Germany 918 835
- Abroad 34,103 24,811
EBIT 11,284 8,063
- Germany -1,935 -1,855
- Abroad 13,604 9,396
Net profit 7,555 5,324


About Tipp24 SE: Tipp24 SE (formerly Tipp24 AG) was founded in September 1999 and holds equity interests in a number of companies in Spain, Italy and the UK, which enable participation in lottery-based games via the Internet. In Germany, Tipp24 Entertainment GmbH operates the games platform Tipp24games.de. From its foundation to the end of 2008, Tipp24 SE brokered tickets worth over 1.5 billion euros to the state lottery companies - in recent years over 330 million euros annually. Following its successful IPO in 2005 (Prime Standard), the company was admitted to the SDAX index in June 2009 and has been trading as a European public limited company since December 2009.

Press contact:
Tipp24 SE
Andrea Fratini
Head of Media and Public Relations
Tel.: +49 40 32 55 33-660
E-mail: presse@tipp24.de
Internet: www.tipp24-se.de/presse/

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