Tipp24 continues on growth path

German gaming firm TIPP24 SE presented respectable first quarter 2013 results setting the tone for the establishment and expansion of its international business.

Key performance indicators include:

– Revenues (which were generated almost entirely abroad) of Euro 37.4 million (Q1/2012: Euro 35.4 million), an increase year-on-year of 5.5 percent.

– EBIT of Euro 12 million reaching 32.3 percent just short of the same period last year of 34 percent.

– Consolidated net profit increased by 3.2 percent to Euro 9.0 million (Q1/2012: 8.7 million).

– Earnings per share improved from Euro 1.08 to Euro 1.13.

– Adjusted for statistic deviations from the expected level of payouts, revenue rose by 1.1 percent to Euro 32.3 million (Q1/2012: Euro 32.0 million), while EBIT fell by 11.9 percent to Euro 9.3 million (Q1/2012: Euro 10.5 million). There was a particularly strong effect from increased hedging costs caused by large jackpots and a necessary restructuring of the hedging profile.

Andreas Keil, chief financial officer of Tipp24 SE, said: “Tipp24 got off to a good start in the new year. We were able to raise revenue and maintain our EBIT at a high level. This was due especially to positive special items resulting from payouts in our secondary lottery business. We expect additional costs during the course of the year from the establishment and expansion of our international business.”

The company’s relocation to London is on track, a decision made as its continued strategic international development is deemed to be significantly better served in the UK than in any other European country, confirmed chief executive officer Dr Hans Cornehl .

“As we also see clear signs for a deregulation of the lottery market in North America, we plan to tap this market more efficiently from our base in London as a partner of the state lottery companies. We shall make targeted use of our leading technological and marketing expertise. Moreover, we are currently in the process of expanding our position on the UK market together with our partner Geonomics. We are convinced that our shareholders will also view the planned relocation positively as it is the logical consequence of our strategic realignment,” said Cornehl.

Over the period the company strengthened its management team with the appointment of Chief Financial Officer Andreas Keil and Helmut Becker as its new Chief Marketing Officer effective June 1, 2013.

Tipp24 SE said it continues to expect consolidated revenues of Euro 130 to 140 million and EBIT of EUR 20 to 30 million for the current fiscal year.