Press release regarding the annual financial report 2012
– Key prerequisites for sustainable growth fulfilled
– Regulatory environment hampered business development in 2012
– Increase in revenues for the lottery market expected
(Hamburg, 27 March 2013) On 27 March, Lotto24 AG published its first annual financial report as an independent publicly listed company. Although the regulatory environment hampered business development significantly, key milestones to enable sustainable growth were met.
In February 2012, Lotto24 AG (previously Tipp24 Deutschland GmbH) was one of the first private companies to re-launch the online brokerage business for state-run lotteries in the federal state of Schleswig-Holstein. The company’s IPO in July 2012 established the financial basis for its business ramp-up.
In September 2012, Lotto24 AG was one of the first private German companies to receive a permit for the online brokerage business for lotteries in the remaining 15 federal states, which is a prerequisite for conducting the business on a nationwide basis. In parallel, the company developed interfaces to the majority of the federal state lotteries, reaching around 90% of the German population. With WEB.DE and GMX, the company signed up two major partners.
As the brokerage permit was only issued in late September and as the advertising permit was not issued in 2012 at all, the company could only generate small scale revenues. During fiscal year 2012, Lotto24 reached a transaction volume of EUR 1.08 million, resulting in revenues of EUR 93,000 (previous year: EUR 0). EBIT according to IFRS came in at a negative EUR 4.28 million (previous year: EUR -308,000). Net profit was EUR -3.06 million (previous year: EUR -248,000). Earnings per share were EUR -0.36 (previous year: EUR 0). Major cost factor during the year were investments in preparation for the nationwide launch of the business. As of 31 December 2012, Lotto24 AG had available funds of EUR 11.16 million (previous year: EUR 63,000).
In early 2013, Lotto24 AG reached another important milestone. As one of the first private companies, Lotto24 AG created interfaces to now all federal lottery administrations and launched a mobile website. Only two weeks ago, Lotto24 AG received one of the first permits for advertising on TV and via the Internet for the online marketing of state-run lotteries. Lotto24 can now advertise in these media throughout Germany and benefit from the extensive preparations to this end.
Petra von Strombeck, CEO, stated, ‘In 2012, we fulfilled key prerequisites for nationwide business activities. We are now well prepared and positioned to give full speed ahead and to take advantage of new market opportunities.’
The company anticipates that market liberalisation as well as the planned price increase for the »6aus49« lottery will lead to a significant increase in lottery market revenues. The online lottery market segment will grow at a significantly faster rate, which will also benefit Lotto24.
