Lotto24 AG starts nationwide marketing


Lotto24 AG / Key word(s): Quarter Results

13.05.2013 / 08:31


Press release on the quarterly report

Lotto24 AG starts nationwide marketing

- Rising revenues at low level

- Earnings dominated by start-up investments

(Hamburg, 13 May 2013) Lotto24 AG today published figures for the first quarter of its fiscal year 2013. After receiving the all-important advertising permit on 13 March, the company immediately launched marketing activities via the Internet. In a first step, an online display campaign and an affiliate programme were initiated.

Petra von Strombeck, CEO of Lotto24 AG, states: 'Although we were only able to begin marketing at the end of the quarter, the initial figures look promising. In the second quarter, we plan to expand our advertising activities. Our targets are to raise the number of registered customers and validate our key performance indicators.'

As the advertising permit was only granted in mid March, no significant revenues were generated in the first quarter of 2013. With 44 thousand registered customers, billings were raised year on year from EUR 25 thousand to EUR 2.04 million, while revenues increased from EUR 2 thousand to EUR 195 thousand and the gross margin improved from 6.7% to 9.6%. Earnings were further dominated by start-up investments: due to comparatively modest revenue streams and higher costs for staff, marketing and the further development of the IT platform, EBIT fell from EUR -551 thousand last year to EUR -1.38 million.

In addition to the expansion of its advertising activities, Lotto24 also expects business to be positively influenced by price and product changes introduced by the German lottery operator 'Deutscher Lotto- und Totoblock': as of May 1, one field of the lottery ticket '6aus49' costs one euro instead of the current 75 cents. At the same time, a ninth prize division was introduced. Due to higher odds, jackpots are expected to grow more quickly.

The complete quarterly financial report is published on the website of Lotto24 AG in the Investor Relations section: www.lotto24-ag.de.

Q1 investors call

The executive management of Lotto24 AG invites all interested analysts, investors and journalists to discuss its Q1 2013 results in a conference call today at 11:00 a.m. In order to attend the call, please dial: +49 30 232531173.

About Lotto24 AG: Lotto24 AG (formerly Tipp24 Deutschland GmbH) was founded by Tipp24 SE in 2010 in order to resume the commercial online brokerage of games of chance in Germany. Following the successful spin-off from its parent company, Lotto24 AG has been listed as an independent company on the Prime Standard segment of the Frankfurt Stock Exchange since 3 July 2012. Lotto24 AG focuses on brokering state-licensed lottery products, such as 'Lotto 6aus49', 'Spiel 77', 'Super 6', 'EuroJackpot' and 'Glücksspirale' via the Internet (www.lotto24.de). Lotto24 enters into gaming contracts with the respective lottery companies on behalf of and in the name of the game participant. Lotto24 aims to become Germany's leading online broker of lottery products.

Press contact:
Lotto24 AG
Frank Schwarz

Tel.: +49 (0) 611 / 1745 398 0
E-mail: ir@lotto24.de
Internet: www.lotto24-ag.de



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