Tipp24 targets US market and hits out at German regulations
Operator set to relocate to London in a bid to target UK and US customers " used Q1 results to criticise German egaming legislation
Tipp24 has begun the process of relocating its registered office to London, as part of “a logical consequence of [its] strategic realignment” as it looks to “grow in four dimensions”.
In a statement accompanying the company’s first quarter results, chief executive Dr Hans Cornehl (pictured) explained that the company was looking to expand its product portfolio, move into new markets, extend its value chain and expand its business models. He picked out the appointment of CFO Andreas Keil and CMO Dr Helmut Becker as key to ensuring the company “is well-equipped for the many development options”.
Despite plans to move to London moving ahead, the company will remain listed on the Prime Standard segment of the Frankfurt Stock Exchange, and will maintain its status as a Societas Europa (SE) company.
Cornehl also referred to the acquistion of a 25.7% stake in Geosweep operator Roboreus, describing the deal as “a major step” towards “the establishment of a new international business division dedicated to providing internet services to lottery companies.” This will see Tipp24 look to acquire new clients in the UK and North American markets.
The lottery operator recorded modest growth for the three months ending 31 March, with revenues rising 5.5% year-on-year to 37.4m, with net profit up from 8.6m to 9m for the quarter. However, increased hedging costs, a result of high jackpots, caused EBIT fall “just short” of 2012’s Q1 figure, declining 1.8% to 12.045m.
In its full-year results the firm expects to post total revenues of between 130m and 140m with EBIT of up to 30m, taking into account “further necessary adjustments to hedging structures in its “¦ lottery business”.
Tipp24 also used the results announcement to criticise German online gambling legislation, highlighting the ECJ’s judgement that in its current format it “[contravenes] the basic freedoms of private suppliers”.
The Frankfurt-listed operator explained that “this inapplicability “¦ affects the obligation of lottery brokers to seek permission from the Federal States”, adding that “the legal situation can still not be deemed resolved”.
The firm highlighted the fact that despite Schleswig-Holstein joining the State Treaty in July 2012, the licenses the Land had awarded under its previous regulatory framework were valid for “several years”.
“Their existence questions the validity of internet regulations in all German states with regard to EU law,” the statement concluded.