Tipp24 AG / Half Year Report



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(Hamburg, 10 August 2006) The positive and stable development of Tipp24 AG
continued uninterrupted once again in the first half of 2006. Billings (+
19.3%) and revenues (+ 26.0%) again posted double-digit growth. Earnings
before interest and taxes – EBIT – also showed another increase (+ 8.7%) in
the first half of 2006.

The most important reasons for the – compared with the first quarter –
moderate growth were the absence of large jackpot winnings and the overall
weakness of the gaming market in Germany in view of uncertain conditions.
In the same quarter last year, a large jackpot resulted in correspondingly
higher figures.

Jens Schumann, a member of the Executive Board and founder of Tipp24 AG,
assesses the situation as follows: 'Tipp24 is proceeding according to plan
with the implementation of its strategic growth targets. In view of our
company’s positive business trend and the undiminished dynamism with which
the online lottery market is developing, we see the commercial outlook as
favourable and confirm our forecast for 2006 – subject to the premise that
our planning parameters, particularly regarding the number of jackpots, are
fulfilled. Our strategic focus on the market for state lottery products on
the Internet is again proving to be advantageous, since in the field of
private sports betting – in which we do not operate – the volatility and
risk have increased enormously.'

Pleasing trend in revenues

In the first half of the fiscal year 2006, Tipp24 AG increased its billings
by 19.3%, from EUR 98.4 million to EUR 117.4 million, compared with the
corresponding period last year.

The gross margin – the ratio of billings to revenues – increased by 0.7
percentage points to 13.1%.

Revenues, which essentially comprise commissions and additional charges,
consequently increased by a disproportionate 26.0%, from EUR 12.2 million
to EUR 15.3 million.

In comparison with the same period last year, the number of registered
customers increased by 319,000 to 1,486,000. In comparison with the balance
sheet date, the number of newly registered customers increased by a total
of 164,000. 52,000 of these new customers were gained during the second
quarter, in which the jackpot situation was considerably less favourable
than in the first. The unfavourable jackpot situation in the second quarter
led to a significant reduction in marketing expenditure for our own
customers.

In the first half of the year, EBIT increased year-on-year by 8.7%, from
EUR 2.8 million to EUR 3.0 million. Consolidated net profit increased in
the half-year comparison by 185.1%, from EUR 1.5 to 4.2 million. The net
operating margin showed a corresponding increase of 15.3 percentage points
to 27.5%. This increase, disproportionately strong in comparison with EBIT,
can be attributed to tax income received. This was essentially a
non-recurring effect from the first quarter of 2006 which is having a
positive impact on the tax ratio for 2006 as a whole.

Outlook

Tipp24 AG confirms its business forecast for 2006: 

Tipp24 is expecting the number of its registered customers to increase by
between 300,000 and 400,000 during the current fiscal year. Billings
procured and revenues are both expected to grow by 30 to 40%. EBIT is
envisaged to increase by some 50% and earnings after taxes by more than 70%
in the current year. The company is basing these forecasts on the
assumption that the average activity rate and the billings per active
customer will remain stable. Prerequisites for this forecast being
fulfilled are, as before, the draw of at least two further major lottery
jackpots in the current fiscal year – without taking the July jackpot into
account – and the payout of the highly profitable German Christmas lottery
“ExtraLotto”, which was offered for the first time at the end of last year.


About Tipp24 AG: Tipp24 was established in 1999 and is now the
market leader for lottery products in the Internet on the basis of
billings. The company has succeeded in achieving impressive growth rates
right from the start. Almost all state lottery products are supplied. It
only takes a few mouse clicks to buy a lottery ticket – round the clock,
quickly and anonymously. The ticket receipt is kept safely, winners are
notified about their prizes automatically by text message and e-mail and
prizes are credited automatically. No extra charge is made for this
service. Subsidiaries of Tipp24 (www.tipp24.de) are Ventura24
in Spain (www.ventura24.es) and Puntogioco24
(www.puntogioco24.it) in Italy.



Press Contact 



Tipp24 AG       

Andrea Fratini       

Head of Media and Public Relations   

Tel.: +49 (0)40 32 55 33 - 660    

E-mail: presse@tipp24.de     

Internet: www.tipp24.de/presse/  



DGAP 10.08.2006 
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Language:     English
Issuer:       Tipp24 AG
              Straßenbahnring 11-13
              20251 Hamburg Deutschland
Phone:        +49 (0)40 325533-0
Fax:          +49 (0)40 325533-77
E-mail:       office@tipp24.de
WWW:          www.tipp24-ag.de
ISIN:         DE0007847147
WKN:          784714
Indices:      
Listed:       Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
              Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart
 
End of News                                     DGAP News-Service
 
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