LOTTO24 AG / Key word(s): Change in Forecast/9 Month figures
Lotto24 continues to grow faster than expected in the third quarter of 2020 and raises its full-year guidance again
Due to the increased marketing investments of EUR 23.2 million (2019: EUR 8.0 million) to acquire new customers, Lotto24 was able to gain 787 thousand new registered customers - including Tipp24's new customers since 15 October 2019 - in the first nine months of 2020 alone (2019: 287 thousand), with a preliminary CPL of EUR 27.58 (2019: EUR 28.04).
In addition, the Company almost doubled billings to EUR 470,9 million in the first nine months of 2020 (2019: EUR 240.5 million) including the Tipp24 business as of 15 October 2019 following ZEAL's business model change and based on preliminary calculations. At a provisional EUR 62.7 million, revenue was even up around 128% on the prior-year figure (2019: EUR 27.5 million). Amongst others supported by the positive development of lottery clubs the gross margin (excluding intercompany effects) of an anticipated 12.4% was correspondingly higher than in the previous year (2019: 11.4%).
Despite significantly increased marketing activities with EUR 15.2 million higher marketing costs, adjusted EBITDA of EUR 3,2 million was only EUR 2.1 million lower than in the previous year (2019: EUR 5.3 million).
In fiscal year 2020, Lotto24 continues to plan to expand its market leadership as an online provider of state lottery products with the Lotto24 and Tipp24 brands. Based on the strong nine-months figures, the Company now expects the number of new registered customers to be around 900 thousand (previously: around 800 thousand) with a lower CPL than in the previous year. In addition, Lotto24 now anticipates billings of between EUR 610 million and EUR 630 million (previously: EUR 590 million and EUR 610 million), revenue of around EUR 80 million including intercompany effects (previously: EUR 72 million and EUR 74 million excluding intercompany effects) and an unchanged gross margin (excluding intercompany effects) of slightly more than 12% in fiscal year 2020. Depending on the general conditions - in particular the continuation of the high marketing investments to acquire new customers within the attractive market environment, the jackpot development and the implementation of the synergy effects - the Company continues to forecast the adjusted EBITDA to remain well above the break-even point.
Explanations of the key financial figures used can be found in the Annual Report 2019 on the Company's website (available at Lotto24-ag.de, there under Investor Relations/Publications).
15-Oct-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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