LOTTO24 AG: Successful expansion of business in the first nine months of 2015


DGAP-News: LOTTO24 AG / Key word(s): 9-month figures

2015-11-12 / 08:00


Press release

Lotto24 AG: Successful expansion of business in the first nine months of 2015

- Increase in billings, revenues and gross margin

- Record growth in new customers with reduced cost per lead (CPL)

- Guidance confirmed

(Hamburg, 12 November 2015) Lotto24 AG - the leading online provider of state-licensed lotteries - continues to make dynamic progress. The first nine months of 2015 were successful. At EUR 101.0 million, billings were up strongly by 75.8% compared to the prior-year figure of EUR 57.5 million. There was also a considerable increase of 88.4% in revenues - from EUR 5.3 million in the same period last year to EUR 10.0 million. Moreover, the gross margin improved significantly in the first nine months of 2015 from 9.2% in the previous year to 9.9%.

Due to effective marketing activities and the very positive jackpot trend for "EuroJackpot" and "Lotto 6aus49" in April, May, July and September, Lotto24 gained 306 thousand new customer registrations in the first nine months (prior year: 219 thousand). As a result, the number of registered customers rose by 81.5% to around 827 thousand as of 30 September 2015 (prior year: 456 thousand).

The cost per lead (CPL) was significantly reduced to EUR 32.23 in the first nine months (prior year: EUR 45.16). At EUR -9.9 million, marketing expenses in the first nine months were unchanged from the previous year (prior year: EUR -9.9 million). Despite the cost of insourcing IT, EBIT improved slightly to EUR -11.3 million (prior year: EUR -11.5 million) and net profit to EUR -10.1 million (prior year: EUR -11.7 million).

"With our compelling KPIs and positive news, we are delighted to be able to report that we have laid the right strategic foundation for us to leave the start-up phase," says Petra von Strombeck, CEO of Lotto24 AG. The insourcing of IT is progressing as well according to plan and is expected to be completed by 31 December 2015 at the latest. "With our technological independence we will achieve a further important milestone."

Assuming external conditions remain unchanged, the company forecasts at least 320 thousand new customers in 2015 (prior year: 284 thousand). As a result of this strong growth in new customers, billings for 2015 are expected to rise by more than 50% compared to the prior-year figure (prior year: EUR 82 million). Lotto24 still anticipates a modest increase in gross margin and a reduction in CPL compared to the previous year. With a slight reduction in marketing expenditure compared to 2014, the company expects EBIT and net profit for the current fiscal year to be on a par with the previous year.

About Lotto24 AG: Lotto24 is Germany's leading online provider of state-licensed lotteries (www.lotto24.de). 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 resume activities on the German market when the new State Treaty on Games of Chance came into effect in 2012 and to receive all the necessary state permits. 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
Verena von Gehlen
Manager Investor & Public Relations
Tel.: +49 (0) 40 / 82 22 39 - 501
E-mail: verena.vongehlen@lotto24.de
Internet: www.lotto24-ag.de
www.lotto24.de





2015-11-12 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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