Tipp24 warns of potential impact to revenue after MyLotto24 payout17th March 2014 9:14 am GMT
German lottery brokerage operator Tipp24 warned Friday that its first quarter revenue may be negatively impacted by a player winning approximately €6.7m in a secondary lottery held by its UK-facing subsidiary MyLotto24.
Tipp24 said that including the jackpot prize, the amount of winnings payouts for secondary lotteries so far this year amounted to €3.8m in total above the statistical average.
“This has resulted so far in a negative revenue effect in the same amount,” the company said. “This negative effect may be offset by winnings payouts during the remainder of the current fiscal year below the statistical average, or by increased stakes received due to a high frequency of large jackpots.”
Tipp24 added that statistical fluctuations like these are “inherent” in the secondary lottery business model.
MyLotto24 organises secondary lotteries based on various European lotteries, with the company bearing the bookmaking risk itself.
Last year, the company was forced to reduce its forecast for the full 2014 year after a player won a jackpot of approximately €15.7m via a secondary lottery held by MyLotto24. It came just four months after another significant jackpot of €6.8m was won in August via a secondary lottery held by MyLotto24.
In February, the company revealed a 9 per cent drop in consolidated revenue to €129.9m for the full year, although results were ahead of its previous guidance range following an above-average performance in December.
Tipp24 intends to announce its guidance for the full 2014 later this month.
Shares in Tipp24 SE (Co. Data) (FRANKFURT) are currently trading up 2.28 per cent at €56.59 per share in Frankfurt this morning.