Lotto24 AG: Market leadership with strong growth in 2013

Lotto24 AG / Key word(s): Final Results

27.03.2014 / 07:30

Lotto24 AG: Market leadership with strong growth in 2013
- Planned milestones reached
- Strong improvement in all KPIs
- Successful capital increase
- Guidance 2014

(Hamburg, 27 March 2014) Lotto24 AG implemented its strategic targets in fiscal year 2013, achieved the planned milestones and established itself as Germany's leading online lottery broker. In early 2013, Lotto24 was already the first private lottery broker to offer customers in all of Germany's federal states the opportunity to play the lottery online. In March 2013, the company added mobile offerings and in December even its first »Android app« for playing the state lottery via mobile devices. On top of this, Lotto24 won a comparison test of six online lottery brokers in October 2013 held by German test portal »« with a score of 1.6 (good).

Strong improvement in all KPIs
In its first full fiscal year as a listed company, all indicators pointed to growth: both billings and revenues in 2013 were well above the prior-year figures at EUR 30.5 million (prior year: EUR 1.1 million) and EUR 2.8 million (prior year: EUR 0.1 million), respectively. Gross margin also rose to 9.1% (prior year: 8.6%). The number of new customer registrations grew by a factor of seven to 208 thousand and resulted in a total of 237 thousand registered customers at year-end (prior year: 29 thousand). As expected, earnings were affected by start-up costs and as a result EBIT fell to around EUR -11.3 million (prior year: EUR -4.3 million) - due in particular to a strong increase in marketing expenses to EUR 7.3 million (prior year: EUR 0.3 million). Acquisition costs per new customer (CPL) amounted to EUR 35.25 (prior year: EUR 10.10). After Lotto24 AG received its advertising permit in March 2013, active marketing of the company's product and service portfolio helped drive its strong performance. 'The development of all key figures in the first fiscal year in which we were largely able to advertise continues to indicate that customers are behaving exactly as expected, based on our earlier experience from 2008,' states Petra von Strombeck, CEO of Lotto24 AG. 'This confirms our assessment that Lotto24's business model works and that we are entering a phase of dynamic company growth.'

Successful capital increase
At the first Annual General Meeting of Lotto24 AG as a listed company on 7 August 2013, a large majority of shareholders voted in favour of creating new Authorised Capital. The successful rights offering in September 2013 with the issue of all 5,988,816 new shares from Authorised Capital on offer enabled the company to reach targeted net issue proceeds of around EUR 17 million. These funds have been earmarked for investment in further growth: in marketing activities to accelerate new customer acquisition, in the further development of the brokerage platform, in the widening of the product portfolio to include further lotteries for Lotto24 to broker, and in the expansion of services for state-licensed lotteries. Magnus von Zitzewitz, Member of the Executive Board of Lotto24 AG: 'We regard the pace of market penetration as a key success factor in our efforts to secure a share of the young and dynamic online lottery market in Germany. Our successful capital increase gave us more scope to achieve this and thus provided us with a competitive advantage.'

Guidance 2014
Assuming that the regulatory environment remains unchanged, Lotto24 AG expects a significant increase - of up to three times the prior-year figure - in billings and revenue for fiscal year 2014, depending on the jackpot situation. Gross margin is likely to remain unchanged from the prior-year figure. As revenues are still comparatively low and marketing expenses will continue to rise strongly, both EBIT and net profit are expected to display higher losses than in the previous year. Moreover, the company expects to add at least 300 thousand new customer registrations in 2014 - also depending on the jackpot situation. 'Our main aim for 2014 is the dedicated expansion of our position as the leading German broker of lottery products via the Internet,' concludes Petra von Strombeck.

About Lotto24 AG: Lotto24 is Germany's leading online broker of state-licensed lotteries ( On behalf of its customers, the company enters into gaming contracts with the respective lottery companies for lottery products such as »Lotto 6aus49«, »Spiel 77«, »Super 6«, »EuroJackpot« and »Glücksspirale«. Following its foundation in 2010, the company was one of the first private online lottery brokers to receive all the necessary state permits in 2012, when the new State Treaty on Games of Chance came into effect, and to resume activities on the German market. Lotto24 AG has been listed in the Prime Standard segment of the Frankfurt Stock Exchange since 3 July 2012. Lotto24 aims to extend its position as Germany's leading online broker of lottery products.

Press contact:
Lotto24 AG
Vanina Hoffmann

Tel.: +49 (0) 40 / 82 22 39 - 501

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