Moderate growth for Tipp24

Tipp24 AG / Quarter 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.

---

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

---

 
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  

---