Tipp24 SE: Report on the first six months of 2013

Aug 8, 2013 9:12 AM

Tipp24 SE / Key word(s): Half Year Results

08.08.2013 / 09:12


Tipp24 SE maintains success in first half of 2013 - full-year guidance for 2013 confirmed

- Revenue EUR 76.4 million - adjusted revenue EUR 65.7 million

- EBIT EUR 21.4 million - adjusted EBIT EUR 15.6 million

- Relocation to London adopted

(Hamburg, 8 August 2013) Tipp24 SE continued its successful development in the first half of 2013. Consolidated revenue - generated almost entirely abroad - was up 12.1 percent to EUR 76.4 million (prior year: EUR 68.2 million), while consolidated EBIT of EUR 21.4 million fell short of its prior-year level of EUR 38.5 million. Last year's result included special items with a positive effect on income of EUR 18.2 million from the spin-off of Lotto24 AG. The EBIT margin fell for the same reasons from 56.5 percent to 28.1 percent. As a consequence, consolidated net profit of EUR 15.4 million was also down on the previous year (EUR 30.0 million). Earnings per share from continued operations amounted to EUR 1.89 (EUR 3.65) in the reporting period.

Adjusted for statistic deviations from the expected level of payouts, consolidated revenue of EUR 65.7 million exceeded the prior-year figure of EUR 63.1 million, while adjusted EBIT amounted to EUR 15.6 million (EUR 36.8 million).

Andreas Keil, CFO of Tipp24 SE, states: 'In our business, revenue and earnings can be strongly influenced by deviations from the expected payout level - which had a positive impact on EBIT of EUR 5.8 million in the first half of 2013. These positive deviations cannot be transferred to the future, though. As we expect a large share of planned additional costs for establishing new businesses, restructuring the hedging profile for our secondary lottery business and overhauling our IT platform in the second half of the year, we are upholding our earnings forecast for the full year in a range of EUR 20 to EUR 30 million.'

Relocation of Tipp24 SE to UK

On 28 June 2013, the Annual General Meeting of Tipp24 SE voted in favour of relocating the company's registered office to London. The company is planning the move as a logical consequence of its strategic realignment with a clear focus on international business.

In order to establish the best-possible conditions for international business, the company continued to strengthen its management team: after expanding the Executive Board in February with the addition of Andreas Keil, Dr. Helmut Becker joined as Chief Marketing Officer on 1 June 2013. With his many years of experience gained at numerous management consultancy firms and Internet companies, he will provide a strong impetus for Tipp24's international growth.

Guidance for 2013 confirmed

After consideration of price increases, Tipp24 SE expects revenue of EUR 130 to 140 million and EBIT of between EUR 20 and 30 million for 2013. This forecast takes account of both costs for adjustments to hedging structures in the secondary lottery business and additional costs for the preparation of new business fields totalling around EUR 15 million. The stated ranges for revenue and EBIT also take account of statistical fluctuations in payouts for the secondary lottery business.

The complete quarterly report is published on the website of Tipp24 SE (www.tipp24.de) in the Investor Relations section.

Quarter comparison: Q2 2013/2012

in EUR thsd. Q2 / 2013 Q2 / 2012 Change in percent Q2 / 2013 adjusted Q2 / 2012 adjusted Change in percent
Revenue 39,051 32,758 19.2 33,409 31,073 7.5
EBIT 9,396 26,479 - 64.5 6,337 26,314 - 75.9
Net profit 6,396 21,305 - 70.0 - - -

Half-year comparison: 2013/2012

in EUR thsd. H1 / 2013 H1 / 2012 Change in percent H1 / 2013 adjusted H1 / 2012 adjusted Change in percent
Revenue 76,424 68,194 12.1 65,737 63,058 4.2
EBIT 21,441 38,527 - 44.3 15,609 36,842 - 57.6
Net profit 15,398 30,034 - 48.7 - - -

About Tipp24 SE: Tipp24 SE was founded in September 1999 and holds equity interests in a number of companies in Spain and the UK, which enable participation in lottery-based games via the Internet, especially via the websites www.ventura24.es, www.mylotto24.co.uk, www.tipp24.com and www.geosweep.com. From its foundation to the end of 2008, Tipp24 SE brokered tickets worth over 1.5 billion euros to the state lottery companies - in the latter 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. In July 2012, German online brokerage activities were successfully spun off from Tipp24 SE in the form of the company Lotto24 AG, which is listed separately on the stock exchange. With the acquisition of a stake in the UK-based company Geonomics Global Games Limited in December 2012, Tipp24 SE laid the foundation for the expansion of its international business.

Press contact:
Tipp24 SE
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/press/

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224839  08.08.2013