Tipp24: ECJ overturns German gaming laws

Tipp24 SE  / Key word(s): Quarter Results

05.11.2010 07:05

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Report on the first nine months of 2010

Tipp24: ECJ overturns German gaming laws

- Consolidated revenue of EUR 66.5 million 
- Consolidated EBIT of EUR 13.6 million 
- German business to be resumed as swiftly as possible
(Hamburg, 5 November 2010) In the first nine months of its current fiscal year, consolidated revenues of Tipp24 grew by 8.9 percent to EUR 66.5 (prior year: 61.1) million. Once again, revenues were dominated by the Group's Abroad segment. Consolidated EBIT fell by 58.9 percent to EUR 13.6 (33.1) million. Consolidated net profit amounted to EUR 8.4 (25.1) million in the period under review and was thus down by 66.7 percent.
In the Germany segment, revenues amounted to EUR 2.3 (2.3) million and EBIT to EUR -6.4 (-9.3) million in the first nine months of 2010. Revenues in the Abroad segment reached EUR 66.0 (60.2) million while EBIT amounted to EUR 20.0 (42.7) million.

The business development of Tipp24 was marked by a special item in the first nine months of the current year. Total winnings paid out for secondary lotteries organized by MyLotto24 Limited, a fully consolidated minority shareholding of Tipp24 SE, exceeded the statistical average by EUR 18.9 million. This had a negative effect on EBIT of EUR 18.3 million.

Political and legal situation

On 8 September 2010, the European Court of Justice (ECJ) declared that the German gambling monopoly was not applicable as it infringes basic European freedoms. The ECJ thus clearly and fully confirmed Tipp24's view of the current legal situation. Tipp24 intends to resume its brokerage of state-run lotteries in Germany as quickly as possible.
The capital market responded positively to the news: following publication of the ECJ's verdict, the Tipp24 share price rose by 14 percent to the end of the quarter.

Dr. Hans Cornehl, CEO of Tipp24 SE, states: 'There are signs that Germany's political leaders are now revising their views. We are confident that a solution can be found which serves the interests of all market participants.' A working committee commissioned by the premiers of Germany's federal states is currently examining two alternatives for the future of the State Treaty on Games of Chance. In both models, the states are considering opening the internet and advertising for lotteries. The working committee's proposal will form the basis of a new State Treaty on Games of Chance to be adopted by the state premiers and expected to come into force in early 2012.
 

Forecast

The Executive Board has confirmed its forecast for the fiscal year 2010 as a whole: Tipp24 expects to achieve consolidated EBIT of at least EUR 20 million and consolidated revenue of at least EUR 90 million in its current fiscal year.


Q3-Report:
https://www.tipp24-se.de/fileadmin/downloads/Tipp24_nine_month_report_2010 0930_e.pdf

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.

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/




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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
Indices:      SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Hamburg, München, Berlin, Düsseldorf, Stuttgart  
End of Announcement DGAP News-Service  

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