Lotto24 delivers strong third quarter

State-run lottery provider LOTTO24 AG turned in robust third quarter results and crossed the milestone two million customer mark.

Billings rose 44.3 percent year over year (yoy) to reach Euro 74.7 million (Q3/2017: Euro 51.8 million), and revenues were up 49.6 percent to Euro 8.7 million (Q3/2017: Euro 5.8 million).

Gross margin improved to 11.6 percent yoy (Q3/2017: 11.2 percent), and an addition 90 thousand customers were registered (Q3/2017: 55,000).

In the first nine months of 2018, Lotto24 generated total billings of Euro 235.9 million, up 43.3 percent, recorded 49.8 percent increase in revenues to Euro 28.1 million and a gross margin of 11.9 percent.

Accordingly the strong increase in revenues saw EBIT rise to Euro 2.2 million (9M/2017: Euro 0.5 million).  Net Profit rose to Euro 7.8 million (9M/2017: Euro 1.3 million) due in particular to a positive technical tax effect of EUR 5.8 million in connection with the formation of deferred taxes.

New customers totalled 468,000, rising by 36.3 percent.

Looking ahead, the company now expects an increase in billings of 38 percent to 43 percent, further strong growth in new customers and a slight improvement in gross margin compared to the previous year.

“Depending on the further progress of external conditions – especially the jackpot trend – and marketing investments to attract new customers, both EBIT and net profit are expected to be well above the break-even mark,” a press statement reads.

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