Zeal Network SE — Earnings Release 2013

Nov 6, 2013

News Details

Corporate | 6 November 2013 09:07

Tipp24 SE: Further success for Tipp24 SE in third quarter

Tipp24 SE / Key word(s): Quarter Results

06.11.2013 / 09:07

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Press release

Report on the first nine months of 2013

Further success for Tipp24 SE in third quarter - relocation to London
progressing as planned

• Revenue of EUR 104.4 million - adjusted EUR 97.9 million - at
  prior-year level

• EBIT of EUR 26.2 million - adjusted EUR 24.3 million

• Guidance confirmed

(Hamburg, 6 November 2013) Tipp24 SE continued its successful development
in the third quarter of 2013. Consolidated revenue of EUR 104.4 million in
the first nine months was on a par with the previous year (EUR 105.1)
million. The adjusted figure amounted to EUR 97.9 million, compared to EUR
95.8 million in the previous year. Although consolidated EBIT fell to EUR
26.2 million, after EUR 47.5 million in the previous year, adjusted EBIT
reached EUR 24.3 (25.4) million with an EBIT margin of 24.8 percent,
compared to 26.5 percent in the previous year.

The adjustment results from the statistic deviation from the expected level
of payouts, as well as the special item from the spin-off of Lotto24 AG in
2012.

At EUR 18.4 million, consolidated net profit was below the prior-year
figure of EUR 36.6 million. Earnings per share from continued operations
amounted to EUR 2.24 (EUR 4.47) in the reporting period.

Relocation of Tipp24 SE in January 2014

Dr. Hans Cornehl, CEO of Tipp24 SE, states: 'We continued to drive our
activities in connection with the strategic realignment of Tipp24 SE in the
third quarter: the relocation of our company's registered office to London
is progressing as planned and is now expected to be completed in January
2014.'

Joint venture with Geonomics in London

After already acquiring a stake in the UK-based Geonomics Global Games
Limited in December 2012, Tipp24 founded a joint venture with Geonomics on
1 October to jointly market their 'GeoLotto' products to end-users in the
UK. Tipp24 holds a 50 percent stake in GeoLotto Limited, based in London.
The product design and marketing of the offering are currently being
optimized - Tipp24 expects a contribution to revenues as of 2014. GeoLotto
Limited is carried at equity in the balance sheet as a joint venture.

Tipp24 SE confirms guidance

After consideration of price increases, Tipp24 SE still expects to achieve
revenues of EUR 130 to 140 million and EBIT of EUR 20 to 30 million in its
fiscal year 2013. This forecast takes account of costs for necessary
adjustments to hedging structures in the company's secondary lottery
business and additional, mostly non-recurring, costs for the preparation of
new business fields totalling EUR 11 million. Moreover, Tipp24 SE expects
to pay a non-recurring fee levied by the UK tax authorities (Stamp Duty
Reserve Tax) in connection with the transfer of Tipp24 shares. It is
expected to be around EUR 4 million and will be recognized in the fourth
quarter as an other operating expense.

The stated ranges for revenue and EBIT also take account of statistical
fluctuations in payouts for the secondary lottery business.

Quarter comparison: Q. III 2013/2012

in EUR Q3 / Q3 / Change in Q3 / 2013 Q3 / 2012 Change in
thsd. 2013 2012 percent adjusted adjusted percent
Revenue 27,947 36,896 -24.3 32,192 32,766 -1.8
EBIT 4,750 8,951 -46.9 8,683 6,681 +30.0
Net
profit 2,994 6,590 -54.6 - - -

Nine-month comparison: 2013/2012

in EUR 9M / 9M / Change in 9M / 2013 9M / 2012 Change in
thsd. 2013 2012 percent adjusted adjusted percent
Revenue 104,371 105,091 -0.7 97,929 95,824 +2.2
EBIT 26,191 47,477 -44.8 24,292 43,523 -44.2
Net
profit 18,392 36,625 -49.8 - - -

(Possible rounding differences due to presentation in EUR thousand)

About Tipp24 SE: Tipp24 SE was founded in September 1999 and holds equity
interests in a number of companies in Spain and the UK, which enable
participation in lottery-based games via the Internet, especially via the
websites www.ventura24.es, www.mylotto24.co.uk, www.tipp24.com and
www.geosweep.com. From its foundation to the current day, Tipp24 has
generated stakes of 2.5 billion euros and thus contributed over 650 million
euros in taxes and duties. Following its successful IPO in 2005 (Prime
Standard), the company was admitted to the SDAX index in June 2009. In July
2012, German online brokerage activities were successfully spun off from
Tipp24 SE in the form of the company Lotto24 AG, which is listed separately
on the stock exchange. With the acquisition of a stake in the UK-based
company Geonomics Global Games Limited in December 2012, Tipp24 SE laid the
foundation for the expansion of its international business.

Press contact:
Tipp24 SE
Andrea Fratini
Head of Media and Public Relations
Tel.: +49 (0)40 32 55 33 660
E-mail: presse@tipp24.de
Internet: www.tipp24.de/press/

End of Corporate News

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Language: English
Company: Tipp24 SE
Straßenbahnring 11
20251 Hamburg
Germany
Phone: Tel.: +49 (0)40 325533-142
Fax: +49 (0)40 325533-5600
E-mail: ir@tipp24.de
Internet: www.tipp24-se.de
ISIN: DE0007847147
WKN: 784714
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart

End of News DGAP News-Service

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