Press release on the first six months of 2013
– Strong revenue growth and increase in number of registered customers due to start of marketing
– All KPIs progress as planned
(Hamburg, 6 August 2013) Lotto24 AG today published results for the first six months of fiscal year 2013. After receiving the important advertising permit in mid March, the company was able to expand its marketing activities in the second quarter of 2013 – on top of numerous online advertising activities, Lotto24 launched a first nationwide TV campaign. All key performance and customer indicators are in line with expectations and the underlying assumptions of the business model.
Petra von Strombeck, CEO of Lotto24 AG, stated: ‘At the end of the first quarter, we were able to start a broad marketing campaign. Accordingly, we have significantly accelerated our growth in the second quarter. All KPIs are in line with our expectations and confirm the Lotto24 business model. For the third quarter, we expect another significant increase in the number of registered customers, billings and revenues.’
As a result of our marketing activities, we were able to double the number of registered customers from 44 thousand to 97 thousand, compared to the end of the previous quarter. Likewise, billings and revenues more than doubled, from EUR 2 million to approximately EUR 5.2 million, and from EUR 195 thousand to EUR 464 thousand, respectively. In particular due to planned start-up investments, especially for marketing, EBIT dropped from EUR -1.4 million to EUR -3.1 million.
In May 2013, the German State Lotteries introduced significant price and product changes, which had an overall positive impact on the Lotto24 business: due to the price increase, we saw an average growth in the stakes for the most important product »Lotto 6aus49« of around 10%. At the same time the change causes jackpots grow much more quickly – and due to the proven correlation between large jackpots and strong customer growth, this should also have a positive long-term effect on revenue.
The complete interim financial report is published on the website of Lotto24 AG in the Investor Relations section: www.lotto24-ag.de.
Q2 investors call
The executive management of Lotto24 AG invites all interested analysts, investors and journalists to discuss its Q1 2013 results in a conference call today at 4:00 p.m. (CET). In order to attend the call, please dial: +49 69 2475 01897.
