Zeal Network SE — Earnings Release 2008

Aug 4, 2008

News Details

Ad-hoc | 4 August 2008 07:03

Tipp24 AG: Subdued growth in sales and earnings

Tipp24 AG / Half Year Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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In the first six months of its fiscal year 2008, the Tipp24 Group raised
earnings before interest and taxes (EBIT) by 86.5 percent to EUR 4,398
(prior-year: EUR 2,358) thousand. The EBIT margin rose by 7.3 percentage
points to 20.4 percent. However, the second quarter of 2007 was burdened by
two special items amounting to EUR 1,772 thousand. After adjustment for
these items, year-on-year EBIT growth would have amounted to 6.5 percent.
Consolidated net profit increased by 75.2 percent to EUR 3,482 (prior year:
EUR 1,987) thousand. The domestic EBIT margin was raised by 13.2 percentage
points (adjusted +1.9 %-points) to 28.6 percent, compared with the
prior-year period, despite start-up costs for the new Skill-Based Games
division and increased other operating expenses for legal and consultation
services.

The Tipp24 Group raised billings to EUR 162,285 (prior year: EUR 139,583)
thousand in the first six months of 2008 – corresponding to year-on-year
growth of 16.3 percent. Revenues rose by 20.1 percent to EUR 21,564 (prior
year: EUR 17,958) thousand. Gross margin – the ratio of revenue to billings
– was up 0.4 %-points on the prior-year level, from 12.9 percent to 13.3
percent. The number of registered customers increased by 60 thousand in the
first six months of 2008 (prior-year period: 136 thousand). This was due in
particular to a more complex registration process caused by the change in
regulatory conditions as of 1 January 2008.

Against a backdrop of continuing uncertainty regarding the effects and
continuation of the current State Treaty on Gaming, we confirm the forecast
made in our last annual report and expect customer growth of at least 100
thousand new customers. We expect an increase in billings, revenue and EBIT
of at least 10 percent. This increase results partly from the positive
effects of customer growth in the past year. On completion of the current
transition phase of the European lottery markets, we expect a return to our
historically proven medium-term growth targets – an annual increase in
revenue of 30 percent and a disproportionately stronger increase in EBIT.

Key figures for the 2nd quarter of 2008

Q.II Q.II 2008 Q.II 2007 Change
Billings € thousand 75,492 70,806 + 6.6%
- Germany € thousand 70,260 66,346 + 5.9%
- Abroad € thousand 5,245 4,460 + 17.6%
Revenue € thousand 10,191 9,050 + 12.6%
- Germany € thousand 8,915 7,954 + 12.1%
- Abroad € thousand 1,276 1,095 + 16.5%
Operating expenses € thousand - 8,163 - 8,699 - 6.2%
EBITDA € thousand 2,028 351 + 477.8%
EBIT € thousand 1,712 161 + 961.7%
EBT € thousand 1,782 711 + 150.6%
Net profit € thousand 1,606 350 + 358.9%

Half-year comparison Q.I-II 2008

Q.I-II Q.I-II 2008 Q.I-II 2007 Change
Billings € thousand 162,285 139,583 + 16.3%
- Germany € thousand 150,142 130,083 + 15.4%
- Abroad € thousand 12,170 9,501 + 28.1%
Revenue € thousand 21,564 17,958 + 20.1%
- Germany € thousand 18,685 15,657 + 19.3%
- Abroad € thousand 2,879 2,301 + 25.1%
Operating expenses € thousand - 16,559 - 15,205 + 8.9%
EBITDA € thousand 5,005 2,753 + 81.8%
EBIT € thousand 4,398 2,358 + 86.5%
EBT € thousand 5,074 3,444 + 47.4%
Net profit € thousand 3,482 1,987 + 75.2%
04.08.2008 Financial News transmitted by DGAP

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Language: English
Issuer: Tipp24 AG
Straßenbahnring 11-13
20251 Hamburg
Deutschland
Phone: +49 (0)40 325533-0
Fax: +49 (0)40 325533-77
E-mail: office@tipp24.de
Internet: www.tipp24-ag.de
ISIN: DE0007847147
WKN: 784714
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

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