Huge lottery payout prompts Tipp24 AG to restate finances

The German online lottery firm Tipp24 AG has had to reset its annual financial forecast following a massive €11.7 million win at subsidiary MyLotto24 three months ago. A statement from the Hamburg-based company reveals that the total amount it paid out in lottery wins in the first half of 2010 exceeded the statistical average by €17.9 million, which led to negative earnings before interest and tax of €16.6 million.

"The consolidated revenues of Tipp24 in the first six months of 2010 amounted to €40.6 million," the company reported. "The year-on-year decline of 24.8% was mainly a result of high winnings payments and positive special items in the first quarter of 2009. The consolidated earnings before interest and tax amounted to €6.5 million in the first half of 2010 - prior year €22.7 million - while consolidated net profits fell to €3.7 million from €17.3 million."

The company reported that in its German business, revenues were slightly up at €1.6 million, (2009: €1.4 million) and EBITDA totalled a negative €4 million (2009: negative €6.8 million).

Revenues generated by overseas operations fell to €40.3 million (2009: €53.2 million) while EBITDA dropped to €10 million (2009: €29.8 million).

This is the second recent occasion in which Tipp24 has had to reset forecast; last year its insurers refused to pay out on another major jackpot win.

Source: InfoPowa News