(Hamburg, 14 January 2016) According to preliminary estimates, Lotto24 AG has exceeded its upgraded KPI guidance from September last year. Billings reached EUR 136.3 million (prior year: EUR 81.7 million) and thus rose by around 67%. Revenues grew by around 75% from EUR 7.7 million in the previous year to EUR 13.5 million. The gross margin improved from 9.5% to 9.9%.
As a result, Lotto24 AG has further expanded its clear market leadership as a provider of state-licensed lotteries via the Internet and made significant gains in market share. According to information supplied by the German Association of State Lottery Companies (Deutscher Lotto- und Totoblock) and the German Lottery Association (Deutscher Lottoverband), online stakes generated by state-owned companies and private lottery brokers rose by more than 33% to around EUR 520 million (2014: around EUR 390 million). As Lotto24 AG grew twice as fast, its share of the online lotto market increased strongly from 21% in the previous year to 26%.
Due to very favourable market conditions with large jackpots for “Lotto 6aus49” and record jackpots for “EuroJackpot”, coupled with increased marketing expenses, Lotto24 AG gained 361 thousand new customers last year (prior year: 284 thousand), according to preliminary calculations. This is the highest number of new customer registrations which the company has recorded in a single fiscal year since its foundation. As of 31 December 2015, the number of registered customers therefore totalled 883 thousand (prior year: 521 thousand). At EUR -11.9 million, marketing expenses were below the prior-year level (EUR -12.8 million). Cost per lead (CPL) was reduced significantly from EUR 45.16 in the previous year to EUR 32.99. Despite the strong investment in expanding market leadership and insourcing IT, EBIT amounted to EUR -13.4 million (prior year: EUR -14.2 million), according to preliminary calculations. Net profit for the fiscal year 2015 improved to EUR -10.8 million (prior year: EUR -16.0 million), according to preliminary calculations. At the end of the reporting period on 31 December 2015, the company had available funds of EUR 9.7 million (31 December 2014: EUR 10.2 million).
In November 2015, Lotto24 AG completed its strategically important IT insourcing programme on schedule and successfully took over operations for its online platform. The company has thus secured its technological independence and can now meet its development needs more quickly and flexibly.
In 2016, Lotto24 AG plans to consolidate and extend its market leadership as an online provider of state-licensed lotteries. Assuming external conditions remain unchanged, and depending on the jackpot situation, the company will pursue a moderate but sustainable growth strategy. Providing there is a statistically average development of jackpot frequencies and amounts, Lotto24 AG anticipates jackpot effects to be lower than in the previous record year and thus plans a significant reduction in marketing expenses with much lower new customer figures and higher CPL. The company expects billings to rise by 25% to 30% with a slight year-on-year improvement in gross margin. According to companys’ expectations, losses of the two KPIs EBIT and net profit will be much lower than in the previous year. Lotto24 AG believes it will require no or only minor additional funding until reaching break-even.
The Annual Report 2015 is to be published on 24 March 2016.
