Tipp24 AG: Tipp24 expands foreign business – launch in UK

Nov 5, 2007 7:57 AM

Tipp24 AG / Quarter 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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Tipp24 is to enter the UK market as a supplier of European lotteries under
the web address www.mylotto24.co.uk on 6 November 2007. With a unique
business model, the company and its wholly-owned subsidiary MyLotto24 Ltd.
will offer the possibility of placing bets on the outcome of various
European lotteries. MyLotto24 Ltd. will operate the business on the basis
of a UK licence acquired by the company in October.

In the first nine months of fiscal 2007 the Tipp24 Group increased earnings
before interest and taxes (EBIT) by 2.4 percent to EUR 5.2 (prior year:
5.1) million, while the EBIT margin fell by 2.6 percentage points to 18.4
percent. This development resulted mainly from two negative special items
in the second quarter of 2007 totaling EUR 1.8 million, as well as start-up
costs for the new UK business. In the third quarter of the current fiscal
year the Tipp24 Group posted a record EBIT result of EUR 2.9 million.
Consolidated net profit fell by 31.8 percent to EUR 3.9 (5.7) million
during the period. This was caused by a positive one-off tax effect in the
previous year as well as by the two negative special items mentioned above.

The Tipp24 Group raised billings to EUR 218.2 (186.4) million in the first
nine months of 2007 – corresponding to year-on-year growth of 17.1 percent.
Revenues rose by 17.0 percent to EUR 28.5 (24.3) million. Gross margin –
the ratio of billings to revenues – remained stable in the first nine
months at the prior-year level of 13.1 percent. The number of registered
customers increased by 409 thousand to 1,990 (1,581) thousand, compared
with the same quarter last year. Of this total, 220 thousand registered
customers were gained in the first nine months of 2007 (same period last
year: 259 thousand).

Allowing for the fact that there were no jackpot draws (by chance) in the
first nine months of the year, Tipp24 expects to add around 300 thousand
registered customers during the current business year – corresponding to
the lower end of the projected growth range. Tipp24 also expects to raise
billings and revenue by just over 20 percent. Due to the scalability of its
business model, the company expects a strong increase in EBIT – adjusted
for the above mentioned special items totalling EUR 1.8 million. Even
including these items, the EBIT result is expected to be slightly higher
than in the previous year.
05.11.2007  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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