Preliminary figures show Tipp24 exceeded own forecasts for fiscal year 2010 and posted record earnings

Tipp24 SE / Key word(s): Change in Forecast/Preliminary Results
20.01.2011 / 09:03

Preliminary figures show Tipp24 exceeded own forecasts for fiscal year 2010 and posted record earnings

* Strong revenues and earnings in unstable regulatory environment * Return to German market planned

(Hamburg, 20 January 2011) According to preliminary and unaudited figures, Tipp24 SE exceeded its own forecasts for fiscal year 2010 and posted its best-ever revenues and earnings. In August 2010, Tipp24 had downgraded its consolidated revenue forecast from originally EUR 100 million to EUR 90 million and its EBIT forecast from originally EUR 40 million to EUR 20 million. Following an exceptionally strong fourth quarter, Tipp24 now expects consolidated revenues for 2010 to reach approx. EUR 104 (prior year: 89.6) million. This would correspond to revenue growth of around 15%.
There was also strong growth in EBIT, from EUR 23.1 million in the previous year to an expected figure of around EUR 30 million in fiscal year 2010. Consolidated net profit is expected to reach approx. EUR 19 (17.5) million. This would result in preliminary earnings per share of approx. EUR 2.46 (2.26). Consolidated cash and cash equivalents at the end of 2010 amounted to around EUR 92 (81.1) million.

Tipp24 SE intends to announce its forecast for fiscal year 2011 at its annual press conference on 30 March 2010.

Dr. Hans Cornehl, sole Executive Board member of Tipp24 SE, states: 'Tipp24 has once again performed exceptionally well in a difficult and unstable regulatory environment. We forecast a stable development for 2010 - apart from the statistical fluctuations inherent in lotteries. This expectation was easily exceeded. The success of the past year once again demonstrates Tipp24's ability to generate sustainable revenue and earnings growth - even in an environment marked by constant change. This is largely due to our special corporate culture, in which an ability for rapid change is firmly anchored.'

Tipp24 plans to return to the German market in 2011. In September 2010, the European Court of Justice (ECJ) had questioned Germany's monopoly regulations, as they did not coherently and consistently tackle the problem of gambling addiction - the declared aim of the lottery and sports betting monopolies. These doubts have since been confirmed by Germany's Federal Administrative Court and Federal Supreme Court. As a result, the country's federal states are currently considering changes to the State Treaty on Games of Chance and a decision is expected for March.
'We appeal to the state premiers to use this opportunity to create sensible and forward-looking conditions for the online brokerage of harmless lotteries,' says Dr. Cornehl. 'This would mean that desperately needed taxes and special-purpose duties which have been unnecessarily lost as a result of the State Treaty on Games of Chance could finally be used once again for social and cultural institutions, as well as for popular sports.'
Press contact:
Tipp24 SE       
Andrea Fratini       
Head of Media and Public Relations 
Tel.: +49 40 32 55 33-660    
E-mail: presse@tipp24.de    
Internet: www.tipp24-se.de/presse/

About Tipp24 SE: Tipp24 SE (formerly Tipp24 AG) was founded in September 1999 and holds equity interests in a number of companies in Spain, Italy and the UK, which enable participation in lottery-based games via the Internet, especially via the websites www.ventura24.es, www.giochi24.it, www.mylotto24.co.uk and www.tipp24.com. In Germany, Tipp24 Entertainment GmbH operates the games platform www.tipp24games.de. From its foundation to the end of 2008, Tipp24 SE brokered tickets worth over 1.5 billion euros to the state lottery companies - in recent years over 330 million euros annually. Following its successful IPO in 2005 (Prime Standard), the company was admitted to the SDAX index in June 2009 and has been trading as a European public limited company since December 2009.

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Language: English Company: Tipp24 SE Straßenbahnring 11 20251 Hamburg Deutschland Phone: +49 (0)40 325533-0 Fax: +49 (0)40 325533-77 E-mail: office@tipp24.de Internet: www.tipp24-se.de ISIN: DE0007847147 WKN: 784714 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart  
 
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