DGAP-News: Lotto24 AG

DGAP-News: Lotto24 AG: Lotto24 maintains its sustainable growth trajectory in first half of 2016

DGAP-News: LOTTO24 AG / Key word(s): Half Year Results LOTTO24 AG: Lotto24 maintains its sustainable growth trajectory in first half of 2016

11.08.2016 / 07:31 The issuer is solely responsible for the content of this announcement.

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Lotto24: Lotto24 maintains its sustainable growth trajectory in first half of 2016

- Over one million customers

- Strongly reduced cost per lead

Hamburg, 11 August 2016 - Lotto24 AG, www.lotto24.de, Germany's leading online provider of state-licensed lotteries, successfully maintained its sustainable growth trajectory in the first half of 2016: billings rose by 35.0% to EUR 84.5 million (prior year: EUR 62.6 million) and revenues by as much as 51.3% to EUR 9.2 million (prior year: EUR 6.1 million). Despite a very strong comparative period in 2015 caused by the favourable jackpot situation, billings were up 14.5% to EUR 43.1 million and revenues by 29.5% to EUR 4.8 million in the second quarter of 2016. Due in part to the success of lotto clubs launched in February 2016, gross margin improved to 10.9% in the first six months of 2016 (prior year: 9.7%).

In the first quarter of 2016, the number of new customers benefited to some extent from strong awareness of the second-highest »EuroJackpot« in the history of this European lottery. As expected, however, the European soccer championship and resulting drop in lotto activity throughout Germany had a negative impact on second quarter sales. Nevertheless, Lotto24 gained 175 thousand new customers in the first half of 2016 (prior year: 208 thousand). All in all, the number of registered customers increased by 45% to 1,058 thousand (prior year: 730 thousand) - and thus already passed the first million-customer mark in April 2016.

In addition, Lotto24 was able to significantly reduce cost per lead (CPL) from EUR 32.80 in the previous year to EUR 28.73 in the first half of 2016. The strong increase in revenues in particular, coupled with a reduction in marketing expenses from EUR -6.8 million to EUR -5.0 million, resulted in an improvement in EBIT to EUR -3.4 million (prior year: EUR -7.9 million). At EUR -1.4 million, the net result for the period was considerably better than in the previous year (EUR -7.0 million).

In 2016, Lotto24 plans to consolidate and expand its market leadership as an online provider of state lotteries. Provided that external conditions remain unchanged, and depending on the jackpot situation, the company will pursue a strategy of moderate and sustainable growth. Assuming a statistically average jackpot frequency and volume, the company expects lower jackpot effects than in the previous record year and therefore plans a significant reduction in marketing expenses, a much lower number of new customers, and CPL on a par with the previous year. Lotto24 AG expects an increase in billings of 25% to 30% and a slight year-on-year improvement in gross margin. According to company expectations, losses will be lower than in the previous year with regard to both EBIT and the net result.

"Our hard work is paying off: we achieved further growth and passed the one-million-customer mark while continually enhancing the quality and user- friendliness of our products and services," says Petra von Strombeck, CEO of Lotto24. "At the same time, we are delighted that our company is making strong progress in moving towards break-even."

About Lotto24 AG: Lotto24 AG is Germany's leading online provider of state- licensed lotteries (www.lotto24.de). Lotto24 brokers customer tickets to the state-owned lottery companies of Germany's federal states, for which it receives a commission. The product range includes »Lotto 6aus49«, »Spiel 77«, »Super 6«, »EuroJackpot«, »GlücksSpirale«, lotto clubs and »Keno«. Following its foundation in 2010 and IPO in 2012 on the Frankfurt Stock Exchange (Prime Standard), Lotto24 is now the clear market leader and well ahead of its competitors. 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 (0) 40 / 82 22 39 - 501 E-mail: ir@lotto24.de Internet: www.lotto24-ag.de www.lotto24.de



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11.08.2016 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.

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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, Tradegate Exchange End of News DGAP News Service ---------------------------------------------------------------------------

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