Tipp24 AG: State Gaming Treaty slows long-standing growth rate

Mar 5, 2009 7:19 AM

Tipp24 AG / Final Results

Release 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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In its fiscal year 2008, earnings before interest and taxes (EBIT) of the
Tipp24 Group were down by 0.6 percent to EUR 8,897 thousand (prior year:
EUR 8,949 thousand). The EBIT margin fell by 0.5 percentage points to 19.4
percent. Consolidated net profit grew 5.3 percent to EUR 6,606 thousand
(prior year: EUR 6,272 thousand). Compared with the previous year, the
domestic EBIT margin was raised by 2.3 percentage points to 27.5 percent.
The segment was burdened by start-up costs for the establishment of the
skill-based games division and increased other operating expenses for legal
and project consultation services. Foreign subsidiaries contributed EUR
-2,079 thousand (prior year: EUR -1,127 thousand) in the period under
review. This figure was strongly influenced by start-up costs for the
Group's entry into the UK market.

Billings of the Tipp24 Group fell by 3.1 percent to EUR 335,947 thousand in
fiscal year 2008 (prior year: EUR 346,776 thousand). Revenues grew by 1.9
percent to EUR 45,838 thousand (prior year: EUR 44,974 thousand). At 13.6
percent, gross margin - the ratio of billings to revenues - was above the
prior-year level of 13.0 percent (+0.6 percentage points). Only 203
thousand registered customers were gained in fiscal year 2008 (prior year:
574 thousand), whereby the major share was added outside Germany. The main
reason was the more restrictive registration process as of 1 January 2008
as a result of the changed regulatory conditions.

Against the backdrop of considerable legal uncertainty in our core market
to date, Germany, it is not possible to reliably forecast revenues and
earnings for fiscal year 2009. Following the current market transition
phase and the settlement of the legal position in Germany, Tipp24 continues
to expect a return to its historically proven medium-term growth targets -
an annual increase in revenue of 30% and a disproportionately stronger
increase in EBIT.
05.03.2009  Financial News transmitted by DGAP
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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
Internet:     www.tipp24-ag.de
ISIN:         DE0007847147
WKN:          784714
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
End of News                                     DGAP News-Service
 
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