DGAP-News
Tipp24 SE: Business development in the first half year burdened by seasonal effects and higher costs
DGAP-News: Tipp24 SE / Key word(s): Half Year Results/Quarter Results
Tipp24 SE: Business development in the first half year burdened by
seasonal effects and higher costs
06.08.2014 / 18:10
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Report on the first six months of 2014
- Revenue of EUR 68.2 million - adjusted year-on-year increase of 1.3
percent
- EBIT of EUR 6.0 million - adjusted EUR 7.1 million
- Higher costs for the preparation of new business fields
- Revised earnings guidance for the full year
(London, 6 August 2014) In the first half of 2014, Tipp24 generated
revenues of EUR 68.2 million (prior year: EUR 76.4 million). Consolidated
EBIT amounted to EUR 6 million and thus fell short of the prior year EBIT
of EUR 21.4 million. This was mainly induced by increased personnel and
other operating expenses as well as a high winning payout of MyLotto24
Limited of around EUR 6.7 million in March 2014. The EBIT margin declined
from 28.1 percent to 8.8 percent.
Adjusted for random statistical effects, consolidated revenues reached EUR
66.6 million and thus exceeded the prior year figure of EUR 65.7 million by
1.3 percent. The increase resulted mainly from the price increases in the
German lottery "6 aus 49" which took effect in May 2013. However, towards
the end of the second quarter customer activity and thus revenues were
negatively affected by the football world championship, which distracted
players from participating in lotteries, unusually good weather and a very
low frequency of relevant jackpots. The similarly adjusted EBIT amounted to
EUR 7.1 million (prior year: EUR 15.6 million) and the EBIT margin to 10.6
percent (prior year: 23.7 percent).
As a result of the lower operating result and a higher tax rate,
consolidated net profit in the first half year amounted to EUR 1.5 million,
well below the level of the previous year (EUR 15.4 million). Earnings per
share amounted to EUR 0.17 (prior year: EUR 1.89).
Dr. Hans Cornehl, Chief Executive Officer at Tipp24 SE: "Even against the
backdrop of a seasonally slower business in the first half of the year and
time delays in the ramp-up of new business fields, we remain confident to
achieve our growth targets for 2014. However, costs will be higher than
anticipated in the full year, even if the larger share of these cost
increases will not be permanent."
Outlook: Revision of earnings guidance for 2014
On the background of a comparably weaker first half year and time delays in
the ramp-up of new businesses, Tipp24 SE adjusts its forecast for the full
Report on the first six months of 2014
- Revenue of EUR 68.2 million - adjusted year-on-year increase of 1.3
percent
- EBIT of EUR 6.0 million - adjusted EUR 7.1 million
- Higher costs for the preparation of new business fields
- Revised earnings guidance for the full year
(London, 6 August 2014) In the first half of 2014, Tipp24 generated
revenues of EUR 68.2 million (prior year: EUR 76.4 million). Consolidated
EBIT amounted to EUR 6 million and thus fell short of the prior year EBIT
of EUR 21.4 million. This was mainly induced by increased personnel and
other operating expenses as well as a high winning payout of MyLotto24
Limited of around EUR 6.7 million in March 2014. The EBIT margin declined
from 28.1 percent to 8.8 percent.
Adjusted for random statistical effects, consolidated revenues reached EUR
66.6 million and thus exceeded the prior year figure of EUR 65.7 million by
1.3 percent. The increase resulted mainly from the price increases in the
German lottery "6 aus 49" which took effect in May 2013. However, towards
the end of the second quarter customer activity and thus revenues were
negatively affected by the football world championship, which distracted
players from participating in lotteries, unusually good weather and a very
low frequency of relevant jackpots. The similarly adjusted EBIT amounted to
EUR 7.1 million (prior year: EUR 15.6 million) and the EBIT margin to 10.6
percent (prior year: 23.7 percent).
As a result of the lower operating result and a higher tax rate,
consolidated net profit in the first half year amounted to EUR 1.5 million,
well below the level of the previous year (EUR 15.4 million). Earnings per
share amounted to EUR 0.17 (prior year: EUR 1.89).
Dr. Hans Cornehl, Chief Executive Officer at Tipp24 SE: "Even against the
backdrop of a seasonally slower business in the first half of the year and
time delays in the ramp-up of new business fields, we remain confident to
achieve our growth targets for 2014. However, costs will be higher than
anticipated in the full year, even if the larger share of these cost
increases will not be permanent."
Outlook: Revision of earnings guidance for 2014
On the background of a comparably weaker first half year and time delays in
the ramp-up of new businesses, Tipp24 SE adjusts its forecast for the full