Tipp24 profits slide 70%
German operator posts net profits of 6.4m in Q2 2013, down from 21.3m the previous year
Online lottery operator Tipp24 has seen its net profits fall 70% year-on-year, the operator announced in its results for the second quarter of the year.
Net profits fell to 6.4m in the second quarter of 2013, a 70% fall compared to 21.3m in the same period last year and EBIT also declined 64.5% year-on-year from 26.5m to 9.4m. However, year-on-year revenues were up 19% from 32.8m to 39m in Q2 2013 generated mostly from abroad.
Tipp24 CFO Andreas Keil, who was appointed early this year, said the firm still expects to post total revenues of between 130m and 140m in its full-year results with EBIT of between 20m and 30m taking into account new costs.
“As we expect a large share of planned additional costs for establishing new businesses, restructuring the hedging profile for our secondary lottery business and overhauling our IT platform in the second half of the year, we are upholding our earnings forecast for the full year in a range of 20 to 30 million,” he said.
In March the German operator announced plans to relocate the company’s registered office to London, described at the time as “a logical step” due to the UK’s favourable conditions for strategic development to target international markets. The proposals were approved by the company’s shareholders at its Annual General Meeting on 28 June.
Tipp24 also appointed Dr Helmut Becker as CMO during the first half of 2013 which the company said in a statement accompanying the results would “provide a strong impetus for Tipp24’s international growth.”