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TIPP24 SHOWS REVENUE GROWTH OF 8.9 PERCENT

And plans to resume its brokerage of state-run lotteries in Germany as quickly as possible.
 
Highlights in the first nine months of 2010:
 
-           Consolidated revenues saw a growth of  8.9 percent to Euro 66.5 million (2009: Euro 61.1 million)
-           Consolidated earnings before interest and tax (EBIT) fell by 58.9 percent to EUR 13.6 million (2009: Euro 33.1 million)
-           Consolidated net profit was down by 66.7 percent amounting to Euro 8.4 million (2009: Euro 25.1 million)
-           The Germany segment saw revenues amounting to Euro 2.3 million (2009: Euro 2.3 million) and EBIT to Euro -6.4 million (2009: Euro -9.3 million)
-           The Abroad segment saw revenues reaching Euro 66.0 million (2009: Euro 60.2 million) while EBIT amounted to Euro 20.0 million (2009: Euro 42.7 million)
 
The business development of Tipp24 was marked by a special item in the first nine months of the current year. Total winnings paid out for secondary lotteries organized by MyLotto24 Limited, a fully consolidated minority shareholding of Tipp24 SE, exceeded the statistical average by Euro 18.9 million. This had a negative effect on EBIT of Euro 18.3 million.
 
 
Political and legal situation:
 
On 8 September 2010, the European Court of Justice (ECJ) declared that the German gambling monopoly was not applicable as it infringes basic European freedoms. Therefore, Tipp24 intends to resume its brokerage of state-run lotteries in Germany as quickly as possible.  Following the publication of the ECJ's verdict, the Tipp24 share price rose by 14 percent to the end of the quarter.
 
Dr. Hans Cornehl, CEO of Tipp24 SE, states: “There are signs that Germany’s political leaders are now revising their views. We are confident that a solution can be found which serves the interests of all market participants.” A working committee commissioned by the premiers of Germany’s federal states is currently examining two alternatives for the future of the State Treaty on Games of Chance. In both models, the states are considering opening the internet and advertising for lotteries. The working committee’s proposal will form the basis of a new State Treaty on Games of Chance to be adopted by the state premiers and expected to come into force in early 2012.
 
Forecast:
 
The Executive Board has confirmed its forecast for the fiscal year 2010 as a whole: Tipp24 expects to achieve consolidated EBIT of at least Euro 20 million and consolidated revenue of at least Euro 90 million in its current fiscal year.



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