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Posted 1/19/11 : Strong revenues and earnings in an unstable regulatory environment
Tipp24 SE reports that its preliminary figures for the fiscal year 2010 have exceeded its own forecasts and that record earnings were posted.
In August 2010, Tipp24 downgraded its consolidated revenue forecast from Euro 100 million to Euro 90 million and its EBIT forecast from Euro 40 million to Euro 20 million.
However, following an exceptionally strong fourth quarter, Tipp24 reports:
-  Expects consolidated revenues for 2010 to reach approximately Euro 104 million (2009: Euro 89.6 million) which would correspond to a revenue growth of around 15 percent.
-  Strong growth in EBIT to an expected Euro 30 million (2009: Euro 23.1 million).
-  Consolidated net profit expected to reach Euro 19 million (2009: Euro 17.5 million).
-  Consolidated cash and cash equivalents at end 2010 amounted to around Euro 92 million (2009: Euro 81.1 million).
Dr. Hans Cornehl, sole Executive Board member of Tipp24 SE, comments:
“Tipp24 has once again performed exceptionally well in a difficult and unstable regulatory environment. We forecast a stable development for 2010 – apart from the statistical fluctuations inherent in lotteries. This expectation was easily exceeded.
"The success of the past year once again demonstrates Tipp24’s ability to generate sustainable revenue and earnings growth – even in an environment marked by constant change. This is largely due to our special corporate culture, in which an  ability for rapid change is firmly anchored.
"Tipp24 plans to return to the German market in 2011. In September 2010, the European Court of Justice (ECJ) questioned Germany’s monopoly regulations, as they did not coherently and consistently tackle the problem of gambling addiction – the declared aim of the lottery and sports betting monopolies. These doubts have since been confirmed by Germany’s Federal Administrative Court and Federal Supreme Court. As a result, the country’s federal states are currently considering changes to the State Treaty on Games of Chance and a decision is expected for March.
“We appeal to the state premiers to use this opportunity to create sensible and forward-looking conditions for the online brokerage of harmless lotteries,” says Dr. Cornehl. “This would mean that desperately needed taxes and special-purpose duties which have been unnecessarily lost as a result of the State Treaty on Games of Chance could finally be used once again for social and cultural institutions, as well as for popular sports.”

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