DGAP-News: LOTTO24 AG: Lotto24 makes an exceptionally good start to the fiscal year 2018

Lotto24 makes an exceptionally good start to the fiscal year 2018

- Quarterly record with just under 180 thousand new customers

- Billings and revenue growth of 25.9% and 28.5%, respectively

- EBIT of EUR -0.3 million due to higher marketing expenses

(Hamburg, 3 May 2018) For Lotto24 AG (Lotto24.de), Germany's leading online provider of state-licensed lotteries, the fiscal year 2018 began exceptionally well - thanks in part to a very positive jackpot trend for the European lottery »EuroJackpot«: at EUR 73.3 million, billings in the first quarter of 2018 rose strongly by 25.9% year on year (prior year: EUR 58.2 million) with even faster growth of 28.5% in revenue to EUR 8.6 million (prior year: EUR 6.7 million). At 11.7%, also the gross margin was up on the previous year (prior year: 11.4%).

With 179.5 thousand new customers in the first three months of 2018 (prior year: 95.1 thousand), the total number of customers registered with Lotto24 grew by 27.3% to 1,753 thousand (prior year: 1,377 thousand) - despite consistently strong competition. In addition to the jackpot-related increase in marketing activities, Lotto24 launched a test run of comparatively more expensive TV commercials in March. As a result, the marketing expenses in the first quarter of 2018 rose to EUR 4.6 million (prior year: EUR 2.3 million). Cost per lead (CPL) was also slightly up on the previous year at EUR 25.52 for the first quarter of 2018 (prior year: EUR 24.07).

In spite of the strong revenue trend, the increase in marketing expenses led to a slight year-on-year decline in EBIT to EUR -0.3 million (prior year: EUR -0.1 million). Due to a negative technical tax effect also net profit for the period of EUR -1.3 million was slightly lower than in the previous year (EUR -1.1 million).

For fiscal year 2018, Lotto24 AG still plans to increase its marketing investment in order to extend its position as the leading online provider of state-licensed lotteries. The company anticipates an increase in billings of 15% to 20%, with a growing number of new customers and a rise in CPL. Lotto24 also expects a slight improvement in gross margin compared to the previous year. Depending on external conditions - especially the jackpot trend - and marketing investments to attract new customers, both EBIT and net profit will remain above the break-even mark.

About Lotto24 AG: Lotto24 is Germany's leading provider of state-licensed lotteries via the Internet (Lotto24.de). Lotto24 brokers customers' tickets to the state lottery companies and the »Deutsche Fernsehlotterie«, for which it receives a commission. The offerings include among others »Lotto 6aus49«, »Spiel 77«, »Super 6«, »EuroJackpot«, »GlücksSpirale«, lotto clubs, »Keno« and the »Deutsche Fernsehlotterie«. After its foundation in 2010 and IPO in 2012 on the Frankfurt Stock Exchange (Prime Standard), Lotto24 is now the market leader. As a fast-growing company with a strong service and customer orientation, Lotto24 aims to provide its customers online as well as mobile with the most convenient, secure and modern game experience possible.

Contact:
Lotto24 AG
Vanina Hoffmann
Manager Investor & Public Relations
Tel.: +49 40 82 22 39 - 501
E-mail: ir@lotto24.de
Internet: Lotto24-ag.de
Lotto24.de