DGAP-Ad hoc: Lotto24 AG

DGAP-Adhoc: Lotto24 AG: Lotto24 raises 2016 guidance following strong third quarter

LOTTO24 AG / Key word(s): Change in Forecast/9-month figures

10.10.2016 17:48

Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Lotto24 raises 2016 guidance following strong third quarter

(Hamburg, 10 October 2016) According to preliminary estimates, Lotto24 AG www.lotto24.de, Germany's leading online provider of state-licensed lotteries, clearly exceeded its prior-year figures in the third quarter of 2016 due to very favourable market conditions with large jackpots for both the »Lotto 6aus49« and »EuroJackpot« lotteries: billings reached EUR 57.0 million and were thus 48.5% up on the third quarter of the previous year (EUR 38.4 million). Revenues of EUR 6.4 million were 64.4% above the corresponding prior-year figure (EUR 3.9 million). The gross margin rose from 10.1% in the previous year to 11.2%. According to preliminary calculations, Lotto24 AG also gained 111 thousand new customers in the third quarter of 2016 (prior year: 97 thousand), despite greatly reduced cost per lead (CPL) in this period of EUR 24.90 (prior year: EUR 30.99).

Based on preliminary calculations, the company reached billings of EUR 141.6 million in the first nine months of 2016 (prior year: EUR 101.0 million, +40.1%), with revenues of EUR 15.6 million (prior year: EUR 10.0 million, +56.4%) and a gross margin of 11.0% (prior year: 9.9%). At EUR 27.24, CPL for the first nine months was well below (-15.5%) the prior-year figure of EUR 32.23. The number of registered customers as of 30 September 2016 amounted to 1,169 thousand (prior year: 827 thousand). There were also strong improvements in both EBIT and net profit of 67.6% and 86.7% in the first nine months to EUR -3.7 million and EUR -1.3 million respectively (prior year: EUR -11.3 million and EUR -10.1 million), according to preliminary calculations.

Lotto24 still plans to consolidate and expand its market leadership as an online provider of state lotteries. Due to stronger than expected positive jackpot effects in the first nine months of 2016, Lotto24 AG is raising its guidance and now expects, with slightly (previously: significantly) reduced marketing expenditure, a slightly higher (previously: much lower) number of new customers and significantly lower CPL (previously: at prior-year level). The company also expects an increase in billings of 35% to 40% (previously: 25% to 30%) as well as a clear (previously: slight) year-on- year improvement in gross margin. As expected, losses of the two KPIs EBIT and net profit will still be much lower than in the previous year. Moreover, following the recently announced loan, Lotto24 AG believes it will require no additional funding until reaching break-even.

The quarterly statement as of 30 September 2016 will be published on 10 November 2016.

10.10.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

--------------------------------------------------------------------------- Language: English Company: LOTTO24 AG Straßenbahnring 11 20251 Hamburg Germany Phone: +49 (0)40 8 222 39 0 Fax: +49 (0)40 8 222 39 70 E-mail: ir@lotto24.de 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 End of Announcement DGAP News-Service ---------------------------------------------------------------------------