Report on the first 9 months of 2006
Nov 6, 2006 9:06 AM
Tipp24 AG / Quarter Results Announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Press Release Report on the first 9 months of 2006 Tipp24 AG continues growth story - Leap in revenues in third quarter - Positive outlook (Hamburg, 6 November 2006) In a difficult legal environment dominated by intensive discussions about the future of Germany’s gaming market, Tipp24 AG succeeded in continuing its positive development. In the first nine months of fiscal 2006, billings grew by 25.0 percent over the same period last year, from EUR 149.1 million to EUR 186.4 million. Revenues – comprising mainly commissions and additional charges – were up 29.9 percent, from EUR 18.7 million to EUR 24.3 million. These extremely strong growth rates were primarily due to a record 'Lotto” jackpot, which already stood at EUR 27 million at the end of September and reached an all-time high of EUR 35 million in the first week of October. As a result of this exceptional jackpot, Tipp24 was able to gain over 100,000 new customers in the first week of October alone (Q4). In the first nine months of fiscal 2006, earnings before interest and taxes (EBIT) improved by 21.2 percent, from EUR 4.2 million to EUR 5.1 million. Due to a non-recurring tax effect, there was a disproportionately strong increase in net profit of almost 150 percent from EUR 2.3 million to EUR 5.7 million. High spending on new customer acquisition during the exceptionally high jackpot period and expansion of the Business Service segment, however, resulted in an increase in total marketing expenses to 33.9 percent of revenues, compared with 27.4 percent in the same period last year. As a result, Tipp24’s extremely high EBIT margin of 21.0 percent was slightly down on the prior-year figure. On the assumption that the current legal conditions remain unchanged, Tipp24 AG expects to attract 300 to 400 thousand new customers per year and raise billings and revenues by 30 to 40% p.a. in each of the next two years. Moreover, Tipp24 expects EBIT for fiscal 2006 to slightly exceed the prior-year figure (2005: EUR 6.0 million). Jens Schumann, a member of the Executive Board and founder of Tipp24 AG, states: 'In the first nine months of 2006, Tipp24 consistently pursued its successful business model – despite the continuing debate about possible legal restrictions. A variety of parties have already documented their doubts as to the legality of the current draft State Treaty on Gaming with regard to constitutional, antitrust and EU legislation. We do not therefore expect Germany’s legislators to act against valid law and political common sense by restricting this growing market. The consequence would be a situation in which everybody loses: lottery players would lose their 'Lotto”, numerous companies would lose the basis for their business and the state would lose revenues of almost EUR 1 billion, which it uses for sport, culture and social affairs.” About Tipp24 AG: Tipp24 was established in 1999 and is now the market leader for lottery products in the Internet on the basis of billings. The company has succeeded in achieving impressive growth rates right from the start. Almost all state lottery products are supplied. It only takes a few mouse clicks to buy a lottery ticket – round the clock, quickly and anonymously. The ticket receipt is kept safely, winners are notified about their prizes automatically by text message and e-mail and prizes are credited automatically. No extra charge is made for this service. Subsidiaries of Tipp24 (www.tipp24.de) are Ventura24 in Spain (www.ventura24.es) and Puntogioco24 (www.puntogioco24.it) in Italy. Key figures for the third quarter 2006Q.III (in € thousand) 2006 2005 Change Billings 69,006 50,693 36.1% - Germany 65,247 48,082 35.7% - Abroad 3,759 2,611 44.0% Revenue 9,014 6,584 36.9% - Germany 8,015 5,908 35.7% - Abroad 999 676 47.8% Operating expenses 6,930 5,221 32.7% EBITDA 2,273 1,617 40.6% EBIT 2,108 1,454 45.0% EBT 2,509 1,520 65.1% Net profit 1,510 815 85.3% Q.I-III (in € thousand) 2006 2005 Change. Billings 186,362 149,073 25.0% - Germany 174,952 143,505 21.9% - Abroad 11,410 5,568 104.9% Revenue 24,344 18,746 29.9% - Germany 21,318 17,243 23.6% - Abroad 3,026 1,503 101.3% Operating expenses 18,701 14,068 32.9% EBITDA 5,643 4,679 20.6% EBIT 5,116 4,220 21.2% EBT 5,727 4,397 30.2% Net profit 5,718 2,291 149.6%Press Contact Tipp24 AG 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/presse/ DGAP 06.11.2006 ---------------------------------------------------------------------- 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 WWW: www.tipp24-ag.de ISIN: DE0007847147 WKN: 784714 Indices: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------