BUSINESS

Tipp24 reports soaring Q2 profits

TAGs: financial results, Tipp24

Tipp24Tipp24 SE is a Germany-based company that is engaged in the provision of lottery services. The Company divides its business into the two geographic segments Germany, which comprises all activities in Germany, as well as Abroad, which focuses on operations in Spain, Italy and the United Kingdom.

Tipp24 has had what can be a termed a banner year as far as financial results are concerned and much of that success can be attributed to the company’s Abroad segment.

Following record earnings in fiscal 2010 and a very good first quarter, Tipp 24 SE continued its success story in the second quarter of 2011. In the first six months of 2011, consolidated revenue rose by 72.4 percent to EUR 70.1 (prior year: 40.6) million – the company’s Abroad segment once again contributing the lion’s share.

Consolidated EBIT reached EUR 33.5 (6.5) million with a rise in the EBIT margin from 16.1 to 47.8 percent. This growth in EBIT by a factor of over five resulted mainly from a more favourable payout statistic compared to last year, as well as from the settlement of a legal dispute of MyLotto24 Limited concerning the payment of an insurance amount.

As noted, much of the success of Tipp24 SE was driven by the Abroad segment which saw the revenue rise to EUR 69.8 (40.3) million, while EBIT improved to EUR 38.3 (10.0) million in the first six months.

Key factors for business in the German segment were the significant regulatory restrictions imposed on lottery activities and major plus for the Tripp24 was when the Halle Administrative Court in Germany ruled that lottery addiction “essentially does not exist”, which allowed Tipp24 to resume regular business as the state of Saxony-Anhalt finally withdrew its appeals.

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