Tipp24 AG / Quarter Results

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In the first nine months of its fiscal year 2008, the Tipp24 Group raised
earnings before interest and taxes (EBIT) by 20.3 percent to EUR 6,299
(prior-year: EUR 5,238) thousand. The EBIT margin rose by 0.7 percentage
points to 19.1 percent. However, the second quarter of 2007 was burdened by
two special items amounting to EUR 1,772 thousand. After adjustment for
these items, year-on-year EBIT growth would have fallen by 10.1 percent.
Consolidated net profit increased by 21.6 percent to EUR 4,743 (prior year:
EUR 3,902) thousand. The domestic EBIT margin was raised by 4.3 percentage
points (adjusted -2.8 percentage points) to 27.4 percent, compared with the
prior-year period, despite start-up costs for the new Skill-Based Games
division and increased other operating expenses for legal and project
consultation services.

The Tipp24 Group raised billings to EUR 244,906 (prior year: EUR 218,176)
thousand in the first nine months of 2008 – corresponding to year-on-year
growth of 12.3 percent. Revenues rose by 15.8 percent to EUR 32,986 (prior
year: EUR 28,491) thousand. Gross margin – the ratio of revenue to billings
– was up 0.4 percentage points on the prior-year level, from 13.1 percent
to 13.5 percent. The number of registered customers increased by just 95
thousand in the first nine months of 2008 (prior-year period: 220
thousand). This was due in particular to a more complex registration
process caused by the change in regulatory conditions as of 1 January 2008.

Due to the chance omission of high jackpots in Germany and Spain in the
first three quarters of the period under review, Tipp24 has concretised the
forecast made in its last annual report: the company confirms customer
growth of at least 100 thousand new customers. However, Tipp24 only expects
an increase in EBIT of at least 10 percent if there is at least one very
large jackpot in Germany (25-30 million euros) during the fourth quarter.
Otherwise, the company expects billings, revenues and EBIT to reach the
prior-year level. Following the current transition phase of the European
lottery markets, Tipp24 expects a return to its historically proven
medium-term growth targets – an annual increase in revenue of 30 percent
and a disproportionately stronger increase in EBIT.

Key 3rd quarter figures 

Q.III                               Q.III 2008    Q.III 2007    Change
Billings              € thousand         82,620        78,592    +   5.1%
- Germany             € thousand         77,174        73,602    +   4.9%
- Abroad              € thousand          5,420         4,990    +   8.6%
Revenue               € thousand         11,422        10,533    +   8.4%
- Germany             € thousand         10,108         9,337    +   8.3%
- Abroad              € thousand          1,314         1,196    +   9.9%
Operating expenses    € thousand        - 9,225       - 7,450    +  23.8%
EBITDA                € thousand          2,197         3,084    -  28.8%
EBIT                  € thousand          1,901         2,879    -  34.0%
EBT                   € thousand          2,377         3,459    -  31.3%
Net profit            € thousand          1,261         1,914    -  34.1%


Nine-month comparison Q.I-III

Q.I-III                           Q.I-III 2008   Q.I-III 2007   Change
Billings             € thousand        244,906        218,176    + 12.3%
- Germany            € thousand        227,316        203,685    + 11.6%
- Abroad             € thousand         17,590         14,491    + 21.4%
Revenue              € thousand         32,986         28,491    + 15.8%
- Germany            € thousand         28,794         24,994    + 15.2%
- Abroad             € thousand          4,193          3,497    + 19.9%
Operating expenses   € thousand        -25,784        -22,655    + 13.8%
EBITDA               € thousand          7,203          5,836    + 23.4%
EBIT                 € thousand          6,299          5,238    + 20.3%
EBT                  € thousand          7,452          6,903    +  8.0%
Net profit           € thousand          4,743          3,902    + 21.6%
03.11.2008  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 Düsseldorf, Hamburg, München, Berlin, Stuttgart
 
End of News                                     DGAP News-Service
 
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