New Gaming law sees German online lottery operator report revenues of $33.32 million for first half of 2008.
Thursday 7th August 2008
German online lottery operator Tipp24 AG has reported that revenues rose by 20.1 percent to $33.32 million for the first half of the year while its consolidated net profits rose 75.2 percent to $5.38 million.
The firm revealed that the introduction of Germany's new State Treaty on Gaming in January saw billings grow by only 16.3 percent for the first six months of the year to $250.79 million but special items in the previous year saw earnings before tax rise by 86.5 percent for the first half of 2008.
“The effects of the ongoing regulatory discussions were felt above all in the second quarter,” said Jens Schumann, Chairman of the Executive Board for Tipp24 AG.
“The requirements of the new State Treaty on Gaming introduced at the beginning of the year led both to increased expenses for legal advice and to considerable cost increases. The more complex registration process also had a significant impact on the number of new customer registrations, which grew by just 60,000 in the period under review. The number of new customers in Germany was only a third of those added in the same period last year.”
Tipp24 stated that, despite difficult conditions, it expects at least 100,000 new customers alongside increases in billings, revenues and earnings of at least ten percent for the upcoming six months. It revealed that its predictions are based on the favourable scalability of its business model and the positive effects of customer growth in the past year.
German online lottery operator Tipp24 AG has reported that revenues rose by 20.1 percent to $33.32 million for the first half of the year while its consolidated net profits rose 75.2 percent to $5.38 million.
The firm revealed that the introduction of Germany's new State Treaty on Gaming in January saw billings grow by only 16.3 percent for the first six months of the year to $250.79 million but special items in the previous year saw earnings before tax rise by 86.5 percent for the first half of 2008.
“The effects of the ongoing regulatory discussions were felt above all in the second quarter,” said Jens Schumann, Chairman of the Executive Board for Tipp24 AG.
“The requirements of the new State Treaty on Gaming introduced at the beginning of the year led both to increased expenses for legal advice and to considerable cost increases. The more complex registration process also had a significant impact on the number of new customer registrations, which grew by just 60,000 in the period under review. The number of new customers in Germany was only a third of those added in the same period last year.”
Tipp24 stated that, despite difficult conditions, it expects at least 100,000 new customers alongside increases in billings, revenues and earnings of at least ten percent for the upcoming six months. It revealed that its predictions are based on the favourable scalability of its business model and the positive effects of customer growth in the past year.