Strong increase in billings and revenues, significant improvment in customer acquisiton costs and EBIT
(Hamburg, 7 May 2015) Lotto24 AG got off to a good start in 2015. In the first quarter of 2015, Lotto24 AG raised billings strongly by 30 % from EUR 19.2 million to EUR 25 million. With a growth of 38.4%, the revenues of EUR 2.4 were above the prior-year figure of EUR 1.7 million. The gross margin increased to 9.5% (prior year: 9.0%).
In line with the guidance, published on 20 January 2015, Lotto24 AG plans to stabilise its market leadership in 2015 with moderate growth in market share. Therefore the target of new customers has been reduced in order to decrease the cost per lead (CPL).
Despite a poorer jackpot situation compared to the strong last year quarter, Lotto24 AG was able to gain around 56 thousand new customers (prior year: 77 thousand) for online lotteries in the first three months of 2015 – a very satisfactory level, in view of the targeted moderate growth. All in all, the number of registered customers grew by more than 83%, from 314 thousand in the previous year to 577 thousand (as of 31 March 2015). Due to the reinforced use of low priced marketing channels, the CPL was considerably reduced to EUR 36.17 (prior year: EUR 47.30). As a result, marketing costs were reduced significantly from EUR -3.6 million (prior year) to EUR -2.0 million. Due to increased revenues and lower marketing expenses, the company was able to improve significantly EBIT to EUR -3.0 million (prior year: EUR -4.1 million) and net profit to EUR -2.6 million(prior year: EUR -4.1 Million).
On the basis of the KPIs achieved in the first quarter of 2015, Lotto24 AG continues to expect developments within the range of its guidance for the current fiscal year.
The quarterly financial report as of 31 March 2015 will be published on 7 May 2015.
