January 10, 2017 (Ad-hoc News) LOTTO24 AG: Very strong fiscal year 2016 with 399 thousand new customers

LOTTO24 AG / Key word(s): Preliminary Results

10-Jan-2017 / 15:44 CET/CEST
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Lotto24 AG: Very strong fiscal year 2016 with 399 thousand new customers

(Hamburg, 10 January 2017) According to preliminary estimates, Lotto24 AG
has again exceeded the guidance it already upgraded in October last year
due to a further very favourable jackpot development - especially of the
EuroJackpot lottery: in the fourth quarter of 2016, billings reached around
EUR 59.0 million (prior year: EUR 35.3 million) and thus grew year on year
by about 67%, according to preliminary estimates. With a preliminary figure
of EUR 6.9 million (prior year: EUR 3.6 million), revenues even rose by
around 95% in the fourth quarter of 2016. For fiscal year 2016 as a whole,
billings and revenues thus grew by approximately 47% to EUR 200.5 million
(prior year: EUR 136.3 million) and around 67% to EUR 22.6 million (prior
year: EUR 13.5 million) respectively, according to preliminary estimates.
Due in part to the successful roll-out of lotto clubs in 2016, gross margin
improved to 11.8% in the fourth quarter of 2016 (prior year: 10.1%) and
thus stood at 11.3% for 2016 as a whole (prior year: 9.9%).
With a preliminary figure of 113 thousand new customers in the fourth
quarter of 2016 alone (prior year: 56 thousand) - corresponding to growth
of around 102% - Lotto24 once again succeeded in raising the number of new
customers in fiscal year 2016 by around 10% to 399 thousand (prior year:
361 thousand), according to preliminary calculations. As of 31 December
2016, the number of registered customers thus totalled 1,282 thousand
(prior year: 883 thousand).
Cost per lead (CPL) of EUR 27.13 in 2016 was well below the prior-year
figure of EUR 32.99. This trend was helped by a CPL of EUR 26.85 in the
fourth quarter (prior year: EUR 37.19).
Based on preliminary calculations, there was a significant improvement in
EBIT to EUR -3.9 million (prior year: EUR -13.4 million) and in net profit
to EUR -2.3 million (prior year: EUR -10.8 million), due in particular to
the strong revenue trend and reduced marketing expenditure of EUR 10.8
million (prior year: EUR 11.9 million).

In 2017, Lotto24 AG plans to extend its market leadership as an online
provider of state-licensed lotteries and continue its sustainable growth
strategy. The company expects jackpot effects to be lower than in the
previous year and thus anticipates a significant reduction in marketing
expenditure, with much lower new customer figures and higher CPL. Lotto24
also expects to raise billings by 15% to 20% with a stable gross margin
compared to the previous year. Depending on external conditions -
especially the jackpot trend - and marketing investments to attract new
customers, EBIT is expected to slightly exceed break-even; net profit will
be clearly above the break-even point.

The Annual Report 2016 is to be published on 30 March 2017.

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   Language:    English
   Company:     LOTTO24 AG
                Straßenbahnring 11
                20251 Hamburg
                Germany
   Phone:       [phone]
   Fax:         [phone]
   E-mail:      [e-mail]
   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



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