Lotto24 AG: Strong growth in billings and revenue, stable development of gross margin and new customers

Lotto24 AG  / Key word(s): Preliminary Results

21.01.2014 12:27

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Ad hoc announcement acc. to Sec. 15 WpHG

Lotto24 AG: Strong growth in billings and revenue, 
stable development of gross margin and new customers 

(Hamburg, 21 January 2014) According to preliminary figures, Lotto24 AG
achieved billings of almost EUR 30.5 million (prior year: EUR 1.1 million)
in its fiscal year 2013, of which around EUR 14.2 million was generated in
the fourth quarter of 2013 (previous quarter: EUR 9.0 million). With
revenues of around EUR 2.7 million in 2013 as a whole (prior year: EUR 93
thousand), of which approximately EUR 1.3 million in the fourth quarter of
2013 (previous quarter: EUR 0.8 million), the gross margin for both the
full year and the fourth quarter of 2013 amounted to 8.9%.

At around 74 thousand, the number of newly registered customers in the
fourth quarter of 2013 was slightly up on the preceding quarter (71
thousand) and thus raised the number of new customer registrations in 2013
as a whole to around 213 thousand (prior year: 30 thousand). The total
number of registered customers amounted to approximately 242 thousand as of
31 December 2013 (prior year: 30 thousand). Marketing expenditure was
around EUR 2.6 million in the fourth quarter (previous quarter: EUR 2.8
million) and around EUR 7.3 million for 2013 as a whole (prior year: EUR
266 thousand). This resulted in a cost per lead (CPL) of EUR 35.4 for the
fourth quarter and EUR 34.6 for 2013. The decision not to increase
marketing expenditure in the fourth quarter of 2013 - a relatively
expensive advertising period - and in particular to restrict the use of TV
commercials was a deliberate decision based on a cost-benefit analysis in
favour of CPL. According to preliminary calculations, the result from
operating activities (EBIT) amounted to almost EUR -11.4 million (prior
year: EUR -4.3 million), while net profit for the period was around EUR
-8.8 million (prior year: EUR -3.1 million). The development of earnings is
in line with the stated strategy of Lotto24 AG to quickly extend its
position as Germany's leading online broker of lottery products by making
significant investments in marketing.

The Annual Report 2013 is to be published on 27 March 2014.


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Language:     English
Company:      Lotto24 AG
              Neuer Wall 63
              20354 Hamburg
              Germany
Phone:        +49 (0)40 8 222 39 0
Fax:          +49 (0)40 8 222 39 70
E-mail:       ir@lotto24.de
Internet:     www.lotto24-ag.de
ISIN:         DE000LTT0243
WKN:          LTT024
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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