Report on the 1st quarter of 2014
 

• Revenue of EUR 30.8 million - adjusted EUR 35.2 million
   
• EBIT of EUR 1.3 million - adjusted EUR 6.5 million
   
• Winnings payouts above expected level in first quarter
   
• Special dividend of EUR 7.50 paid on 30 April 2014

(London, 8 May 2014) Tipp24 SE is satisfied with the progress of its operating business in the first three months of its fiscal year 2014. Consolidated revenues in the first quarter amounted to EUR 30.8 million (prior year: EUR 37.4 million). In March, the fully consolidated minority shareholding MyLotto24 Limited recorded a jackpot pay-out of EUR 6.7 million for a secondary lottery it held. Including this amount, total payouts for secondary lottery winnings in the first quarter were EUR 4.4 million above the expected statistical payout value, compared to EUR 5.0 million below the expected value in the previous year. Adjusted for these statistical deviations, revenue in the first quarter of EUR 35.2 million was 9.0 percent higher than the prior-year figure of EUR 32.3 million.

Due to the higher than expected winnings payouts, as well as increased personnel expenses and operating costs, consolidated earnings before interest and taxes (EBIT) amounted to EUR 1.3 million, compared to EUR 12.0 million in the previous year. The rise in costs resulted mainly from additional marketing activities and the hiring of staff in preparation of new business fields. Adjusted for statistical deviations, EBIT reached EUR 6.5 (9.3) million. The company thus generated an adjusted EBIT margin of 18.5 (28.7) percent.

At EUR 0.1 million, the consolidated net profit fell well short of the prior-year figure (EUR 9.0 million). Earnings per share for the reporting period amounted to EUR 0.01 (1.13).

Dr. Hans Cornehl, Chief Executive Officer of Tipp24 SE: "We are confident that we can offset the special items of the first quarter over the course of the year. We are therefore confirming the full-year guidance we issued on presentation of our annual results for 2013 in late March. Following the successful relocation of our head office to the UK in February, we continue to focus on the implementation of our internationalisation strategy."
 

Special dividend of EUR 7.50 paid in April

Subsequent to the reporting period, Tipp24 SE paid its shareholders a special dividend of EUR 7.50 on 30 April 2014, as already indicated in February. The total dividend pay-out amount was around EUR 62.9 million.
 

Outlook: guidance for 2014 confirmed

The outlook for the current fiscal year 2014 remains positive. Tipp24 SE expects revenue growth to between EUR 135 and EUR 145 million and EBIT growth to between EUR 25 and EUR 35 million. This forecast takes account of costs amounting to EUR 10 million for the readjustment of hedging structures in the company's secondary lottery business, adjustments to the IT platform, as well as additional, mostly non-recurring costs for the preparation of new business fields. The stated ranges for revenue and EBIT also take account of statistic fluctuations in payouts for the secondary lottery business.
 

The interim report on the 1st quarter of 2014 is available online at
http://www.tipp24-se.co.uk/websites/tipp24/English/3000/publications.html
 

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.geolotto.co.uk. From its foundation to the current day, Tipp24 has generated stakes of 2.5 billion euros and thus contributed over 650 million euros in taxes and duties. 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. In February 2014, the company successfully completed the relocation of its registered office to the UK, from where it plans to drive the internationalisation of its business activities.
 

Press contact:

Tipp24 SE
Andrea Fratini
Head of Media and Public Relations
Tel.: +44 (0)20 3739-7122
E-mail: media@tipp24.co.uk
Internet: www.tipp24-se.co.uk/presse/

FTI Consulting
Dr. Lutz Golsch
Senior Managing Director
Tel.: +49 (0)69 920 37 110
E-Mail: Lutz.Golsch@fticonsulting.com