Lotto24, Germany’s leading online provider of state-licensed lotteries, the fiscal year 2018 began exceptionally well – thanks in part to a very positive jackpot trend for the European lottery »EuroJackpot«: at EUR 73.3 million, billings in the first quarter of 2018 rose strongly by 25.9% year on year (prior year: EUR 58.2 million) with even faster growth of 28.5% in revenue to EUR 8.6 million (prior year: EUR 6.7 million). At 11.7%, also the gross margin was up on the previous year (prior year: 11.4%).

With 179.5 thousand new customers in the first three months of 2018 (prior year: 95.1 thousand), the total number of customers registered with Lotto24 grew by 27.3% to 1,753 thousand (prior year: 1,377 thousand) – despite consistently strong competition. In addition to the jackpot-related increase in marketing activities, Lotto24 launched a test run of comparatively more expensive TV commercials in March. As a result, the marketing expenses in the first quarter of 2018 rose to EUR 4.6 million (prior year: EUR 2.3 million). Cost per lead (CPL) was also slightly up on the previous year at EUR 25.52 for the first quarter of 2018 (prior year: EUR 24.07).

In spite of the strong revenue trend, the increase in marketing expenses led to a slight year-on-year decline in EBIT to EUR -0.3 million (prior year: EUR -0.1 million). Due to a negative technical tax effect also net profit for the period of EUR -1.3 million was slightly lower than in the previous year (EUR -1.1 million).

For fiscal year 2018, Lotto24 AG still plans to increase its marketing investment in order to extend its position as the leading online provider of state-licensed lotteries. The company anticipates an increase in billings of 15% to 20%, with a growing number of new customers and a rise in CPL. Lotto24 also expects a slight improvement in gross margin compared to the previous year. Depending on external conditions – especially the jackpot trend – and marketing investments to attract new customers, both EBIT and net profit will remain above the break-even mark.