Tipp24 Q3 profits halved as slide continues
Net profits down 54.6% year-on-year to 2.9m as company prepares for London relocation
German online lottery operator Tipp24 has seen its Q3 net profits more than halve following the spin-off of Lotto24 last year.
Net profits for the period fell 54.6% year-on-year to 2.9m, while revenue dropped 24.3% from the 36.9m recorded in Q3 2012 to 27.9m this year.
The disappointing results continue a trend set in the operator’s Q2 results, which showed a 70% reduction in net profits year-on-year.
Despite the results the company has confirmed its guidance for the 2013 fiscal year, insisting it remains on track to record revenues of 130m to 140m and EBIT of between 20m and 30m.
The forecast takes into account various non-recurring charges relating to its change in strategy, with the company also indicating it expects to pay a fee of around 4m to UK tax authorities ahead of the transfer of Tipp24 shares.
The company is to relocate to London from Hamburg, with CEO Hans Cornehl stating the relocation to be part of a wider strategic realignment of the company.
“The relocation of our company’s registered office to London is progressing as planned and is now expected to be completed in January 2014,” he said.