– Increase in revenues by 81% in the first half-year and by 125 % in the second quarter
– Highest number of new customer registrations gained in a single quarter
– Significant reduction in cost per lead (CPL)
Hamburg, 13 August 2015 – Today, Lotto24 AG has published its half-yearly financial report 2015 as of 30 June 2015. The leading online provider of state lotteries (www.lotto24.de) succeeded again in greatly enhancing its key performance indicators.
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 81% 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.
‘The accelerated growth in billings, revenues and new customers is providing strong confirmation of the success of our marketing activities and is an important step on the way to leaving the start-up phase’, says Petra von Strombeck, CEO of Lotto24 AG.
Record growth in new customers in the second quarter 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). However, net profit improved in the first half of 2015 to EUR -7.0 million (prior year: EUR -7.5 million).
Progress in insourcing of the IT
The insourcing of the IT, which will be completed by no later than the end of this year, is progressing according to plan. The development of the operating software was successfully taken over and most vacancies of the newly created IT department were filled. Moreover Lotto24 has now already decided on the data centres.
Cash capital increase at 10% premium
In order to expand the business activities further, on 14 July 2015, the company increased the share capital by around EUR 2.2 million at a 10% premium which were placed entirely with two significant investors. The company received gross proceeds from the capital increase of nearly EUR 7.7 million. Providing the surrounding conditions remain unchanged, Lotto24 AG believes that either no or only minor additional funding will be required until achieving break even.
The declared aim of Lotto24 AG is still to continue growing and to consolidate the market leadership as an online provider of state lotteries in Germany.
