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. ---------------------------------------------------------------------- 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 ---------------------------------------------------------------------- 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 ---------------------------------------------------------------------------