DGAP-News: Lotto24 AG

DGAP-News: Lotto24 AG: Lotto24 is on track for success

DGAP-News: LOTTO24 AG / Key word(s): Final Results LOTTO24 AG: Lotto24 is on track for success

24.03.2016 / 08:00 The issuer is solely responsible for the content of this announcement.

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Lotto24 is on track for success

- Strong growth in in billings and revenues

- Significant reduction of cost per lead

- Expansion of market leadership, left start-up phase

Hamburg, 24 March 2016 - 2015 was a successful year for Lotto24 AG, Germany's leading provider of state-licensed lotteries via the Internet. The annual financial report, published today, confirms the KPIs reported preliminarily in January. Billings and revenues both increased in 2015: by 67% from EUR 81.7 million to EUR 136.3 million and by 75% from EUR 7.7 million to EUR 13.5 million, respectively. At the same time, the gross margin improved from 9.5% to 9.9%.

With this growth, Lotto24 increased the market share from 21% in the previous year to 26%. According to information released by the German Lottery Association ("Deutscher Lottoverband"), online sales of the 16 state lottery companies and private brokers grew from EUR 390 million in 2014 to around EUR 520 million in 2015 and thus accounted for 7% of total German lottery sales in 2015 (prior year: 6%).

Petra von Strombeck, CEO of Lotto24 AG: "In 2015, we again expanded our market leadership. 2015 was also the year in which we reached major milestones and left the start-up phase. We are very confident that we can continue on this successful course in 2016."

Aided by the very favourable jackpot trends of "Lotto 6aus49" and "EuroJackpot", as well as by efficient marketing activities, Lotto24 gained a total of 361 thousand new customer registrations in 2015 (prior year: 284 thousand) and thus easily exceeded the figure forecast in September of at least 320 thousand new customers. This is the highest number of new customer registrations Lotto24 AG has ever gained in a single fiscal year since its foundation. On 31 December 2015 the number of registered customers amounted to 883 thousand (prior year: 521 thousand).

Cost per lead (CPL) was strongly reduced by around 27% to EUR 32.99 (prior year: EUR 45.16). The marketing expenses amounted to EUR -11.9 million (prior year: EUR -12.8 million).

As planned, Lotto24 successfully completed the insourcing of the IT in the fourth quarter 2015. This enables the company to meet their own development needs more quickly, flexibly and easily in future and gives technological independence. Already in the first quarter 2016, the new products "Keno" and lotto clubs were integrated on the online platform.

Despite the investments made in expanding the market leadership and setting up the own IT department, the operating result (EBIT) amounted to EUR -13.4 million (prior year: EUR -14.2 million) and the net result for the period improved to EUR -10.8 million (prior year: EUR -16.0 million).

Lotto24 AG is well prepared to consolidate and to further expand its market lead.

The quarterly announcement as of 31 March 2016 will be published on 12 May 2016.

About Lotto24 AG: Lotto24 is Germany's leading provider of state-licensed lotteries via the Internet (www.lotto24.de). Lotto24 brokers customers' tickets to the state lottery companies and receives brokerage commissions without bearing the bookmaking risk. The offerings include "Lotto 6aus49", "Spiel 77", "Super 6", "EuroJackpot", "GlücksSpirale", lotto clubs and "Keno". After its foundation in 2010 and the IPO in 2012 on the Frankfurt Stock Exchange (Prime Standard), Lotto24 is now the clear market leader and well ahead of the competition. As a fast-growing company with a strong service and customer orientation, it aims to provide its customers with the most convenient, secure and modern game experience possible.

Kontakt:

Lotto24 AG

Verena von Gehlen

Straßenbahnring 11

20251 Hamburg

Fon: + 49 40 / 822239 - 501

ir@lotto24.de

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24.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

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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 End of News DGAP News Service ---------------------------------------------------------------------------

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