Lotto24 AG: very strong second quarter 2015 with substantial increase in revenues and new customers as well as significantly reduced cost per lead
(Hamburg, 13 July 2015) According to preliminary estimates, Lotto24 AG succeeded in greatly enhancing its key performance indicators in the first half of 2015. Billings of EUR 62.6 million for the first six months of 2015 were more than 70% above the prior-year figure of EUR 36.7 million. Revenues rose by more than 80% from EUR 3.4 million in the previous year to EUR 6.1 million. The second quarter of 2015 played a major role in this development with an increase in billings by more than 114% to EUR 37.6 million (prior year: EUR 17.5 million). Revenues rose by more than 125% to EUR 3.7 million (prior year: EUR 1.6 million). Gross margin also improved from 9.2% in the previous year to 9.7% in the first half of 2015.
Due to the very favourable jackpot situation over several weeks in April and May with high jackpots for Lotto 6aus49 and record jackpots for EuroJackpot, the number of new registered customers was nearly tripled in the second quarter, from 58 thousand (previous year) to 153 thousand. This is the highest number of new customer registrations gained in a single quarter since the IPO of Lotto24 AG in 2012. As of 30 June 2015, the number of registered customers therefore totalled 730 thousand (prior year: 372 thousand). In order to benefit from the increased efficiency of new customer acquisition during high jackpot periods, marketing activities were stepped up in the second quarter. As a result, marketing expenses increased from EUR -6.2 million in the previous year to EUR -6.8 million in the first half of 2015. Cost per lead (CPL) was reduced significantly to EUR 32.80 (prior year: EUR 46.16). In the second quarter, CPL was just EUR 31.58 (prior year: EUR 44.64). As a result of the stepped up marketing activities, EBIT decreased to EUR -7.9 million (prior year: EUR -7.3 million) – according to preliminary calculations. However, net profit improved in the first half of 2015 to EUR -7.0 million (prior year: EUR -7.5 million). At the end of the reporting period on 30 June 2015, the company had available funds of EUR 6.2 million (31 December 2014: EUR 10.2 million).
In view of the success expected for the second quarter, Lotto24 AG already upgraded on 20 May 2015 the guidance for the current fiscal year it published on 20 January 2015: instead of reduced growth, it forecast strong new customer growth in line with the prior-year figure (284 thousand). Lotto24 expects a less significant reduction in marketing expenses compared to the previous year but still plans a year-on-year decrease in CPL. Assuming that the regulatory environment remains unchanged, and depending on the jackpot situation, Lotto24 AG continues to expect a strong increase in billings of up to 50% and a slight year-on-year improvement in gross margin. Moreover, losses of the two KPIs EBIT and net profit are expected to be lower than in the previous year. At the same time, the company is continuing the insourcing of its strategically important IT division started in 2014. Lotto24 AG still expects that losses of the two KPIs EBIT and net profit will be lower in the current fiscal year than in the previous year. The company aims to secure and extend its position as Germany’s leading online provider of lottery products.
The quarterly financial report as of 30 June 2015 will be published on 13 August 2015.
