Tipp24 AG: Subdued growth in sales and earnings

Tipp24 AG / Half Year 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.

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In the first six months of its fiscal year 2008, the Tipp24 Group raised earnings before interest and taxes (EBIT) by 86.5 percent to EUR 4,398 (prior-year: EUR 2,358) thousand. The EBIT margin rose by 7.3 percentage points to 20.4 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 amounted to 6.5 percent. Consolidated net profit increased by 75.2 percent to EUR 3,482 (prior year: EUR 1,987) thousand. The domestic EBIT margin was raised by 13.2 percentage points (adjusted +1.9 %-points) to 28.6 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 consultation services.

The Tipp24 Group raised billings to EUR 162,285 (prior year: EUR 139,583) thousand in the first six months of 2008 – corresponding to year-on-year growth of 16.3 percent. Revenues rose by 20.1 percent to EUR 21,564 (prior year: EUR 17,958) thousand. Gross margin – the ratio of revenue to billings – was up 0.4 %-points on the prior-year level, from 12.9 percent to 13.3 percent. The number of registered customers increased by 60 thousand in the first six months of 2008 (prior-year period: 136 thousand). This was due in particular to a more complex registration process caused by the change in regulatory conditions as of 1 January 2008.

Against a backdrop of continuing uncertainty regarding the effects and continuation of the current State Treaty on Gaming, we confirm the forecast made in our last annual report and expect customer growth of at least 100 thousand new customers. We expect an increase in billings, revenue and EBIT of at least 10 percent. This increase results partly from the positive effects of customer growth in the past year. On completion of the current transition phase of the European lottery markets, we expect a return to our historically proven medium-term growth targets – an annual increase in revenue of 30 percent and a disproportionately stronger increase in EBIT.

Key figures for the 2nd quarter of 2008

Q.II Q.II 2008 Q.II 2007 Change Billings € thousand 75,492 70,806 + 6.6% - Germany € thousand 70,260 66,346 + 5.9% - Abroad € thousand 5,245 4,460 + 17.6% Revenue € thousand 10,191 9,050 + 12.6% - Germany € thousand 8,915 7,954 + 12.1% - Abroad € thousand 1,276 1,095 + 16.5% Operating expenses € thousand - 8,163 - 8,699 - 6.2% EBITDA € thousand 2,028 351 + 477.8% EBIT € thousand 1,712 161 + 961.7% EBT € thousand 1,782 711 + 150.6% Net profit € thousand 1,606 350 + 358.9%

Half-year comparison Q.I-II 2008

Q.I-II Q.I-II 2008 Q.I-II 2007 Change Billings € thousand 162,285 139,583 + 16.3% - Germany € thousand 150,142 130,083 + 15.4% - Abroad € thousand 12,170 9,501 + 28.1% Revenue € thousand 21,564 17,958 + 20.1% - Germany € thousand 18,685 15,657 + 19.3% - Abroad € thousand 2,879 2,301 + 25.1% Operating expenses € thousand - 16,559 - 15,205 + 8.9% EBITDA € thousand 5,005 2,753 + 81.8% EBIT € thousand 4,398 2,358 + 86.5% EBT € thousand 5,074 3,444 + 47.4% Net profit € thousand 3,482 1,987 + 75.2% 04.08.2008  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 Berlin, Düsseldorf, Hamburg, München, Stuttgart  
End of News DGAP News-Service  

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