LOTTO24 AG: Lotto24 with strong third quarter 2018
Lotto24 with strong third quarter 2018
- Billings +44%; revenues +50% - 2 million customer mark passed
(Hamburg, 7 November 2018) In the third quarter of 2018, Lotto24 AG, Germany's leading online provider of state-run lotteries, continued to benefit from the strong development of the European lottery »EuroJackpot« in 2018 as a whole: billings rose 44.3% year on year to EUR 74.7 million (prior year: EUR 51.8 million), while revenues of EUR 8.7 million exceeded the corresponding prior-year figure by as much as 49.6% (prior year: EUR 5.8 million). Due in part to the positive trend in lotto clubs, the gross margin improved to 11.6% (prior year: 11.2%). At the same time, a further 90 thousand new customers were added (prior year: 55 thousand) with a cost per lead (CPL) of EUR 25.78 (prior year: EUR 30.97).
In the first nine months of 2018, Lotto24 thus generated total billings of EUR 235.9 million (prior year: EUR 164.6 million, +43.3%), revenues of EUR 28.1 million (prior year: EUR 18.8 million, +49.8%) and a gross margin of 11.9% (prior year: 11.4%). With 468 thousand new customers (prior year: 216 thousand), the total number of customers registered with Lotto24 rose by 36.3% to 2,041 thousand (prior year: 1,497 thousand). Due to the jackpot-related increase in marketing activities and the test run of comparatively more expensive TV commercials conducted in the first half of 2018, marketing expenses in the first nine months of 2018 rose to EUR 12.0 million (prior year: EUR 5.8 million). However, CPL of EUR 25.58 was down on the previous year (prior year: EUR 26.63). Thanks to the strong improvement in revenues, EBIT rose to EUR 2.2 million (prior year: EUR 0.5 million); due in particular to a positive technical tax effect of EUR 5.8 million in connection with the formation of deferred taxes, net profit amounted to EUR 7.8 million (prior year: EUR 1.3 million).
For 2018 as a whole, the company now expects an increase in billings of 38% to 43%, further strong growth in new customers, and CPL on a par with the previous year. In addition, Lotto24 continues to expect a slight improvement in gross margin compared to the previous year. Depending on the further progress of external conditions - especially the jackpot trend - and marketing investments to attract new customers, both EBIT and net profit are expected to be well above the break-even mark.
About Lotto24 AG: Lotto24 is Germany's leading provider of state-licensed lotteries via the Internet (Lotto24.de). Lotto24 brokers customers' tickets to the state lottery companies and the »Deutsche Fernsehlotterie«, for which it receives a commission. The offerings include among others »Lotto 6aus49«, »Spiel 77«, »Super 6«, »EuroJackpot«, »GlücksSpirale«, lotto clubs, »Keno« and the »Deutsche Fernsehlotterie«. After its foundation in 2010 and IPO in 2012 on the Frankfurt Stock Exchange (Prime Standard), Lotto24 is now the market leader. As a fast-growing company with a strong service and customer orientation, Lotto24 aims to provide its customers online as well as mobile with the most convenient, secure and modern game experience possible.
07.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: LOTTO24 AG Straßenbahnring 11 20251 Hamburg
Germany Phone: +49 (0)40 8 222 39 0 Fax: +49 (0)40 8 222 39 70 E-mail: firstname.lastname@example.org Internet: www.lotto24-ag.de ISIN: DE000LTT0243 WKN: LTT024 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service