Mediaboss Marketing

Press release on the quarterly report

Lotto24 AG starts nationwide marketing

- Rising revenues at low level

- Earnings dominated by start-up investments

(Hamburg, 13 May 2013) Lotto24 AG today published figures for the first quarter of its fiscal year 2013. After receiving the all-important advertising permit on 13 March, the company immediately launched marketing activities via the Internet. In a first step, an online display campaign and an affiliate programme were initiated.

Petra von Strombeck, CEO of Lotto24 AG, states: 'Although we were only able to begin marketing at the end of the quarter, the initial figures look promising. In the second quarter, we plan to expand our advertising activities. Our targets are to raise the number of registered customers and validate our key performance indicators.'

As the advertising permit was only granted in mid March, no significant revenues were generated in the first quarter of 2013. With 44 thousand registered customers, billings were raised year on year from EUR 25 thousand to EUR 2.04 million, while revenues increased from EUR 2 thousand to EUR 195 thousand and the gross margin improved from 6.7% to 9.6%. Earnings were further dominated by start-up investments: due to comparatively modest revenue streams and higher costs for staff, marketing and the further development of the IT platform, EBIT fell from EUR -551 thousand last year to EUR -1.38 million.

In addition to the expansion of its advertising activities, Lotto24 also expects business to be positively influenced by price and product changes introduced by the German lottery operator 'Deutscher Lotto- und Totoblock': as of May 1, one field of the lottery ticket '6aus49' costs one euro instead of the current 75 cents. At the same time, a ninth prize division was introduced. Due to higher odds, jackpots are expected to grow more quickly.

The complete quarterly financial report is published on the website of Lotto24 AG in the Investor Relations section: http://www.lotto24-ag.de.

Q1 investors call

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DGAP-News: Lotto24 AG starts nationwide marketing