Lotto24.de Germany’s leading online provider of state-licensed lotteries, easily exceeded its prior-year figures in the second quarter of 2018 due to the exceptionally high jackpots of the European lottery »EuroJackpot«: billings of EUR 87.9 million were up 61.1% on the second quarter of the previous year (EUR 54.6 million).

At EUR 10.9 million, revenues were even 72.5% above the corresponding figure for the prior-year quarter (EUR 6.3 million). Due in part to the positive trend in lotto clubs, gross margin improved to 12.4% (prior year: 11.6%). Moreover, preliminary estimates indicate that Lotto24 AG gained 198 thousand new customers in the second quarter of 2018 alone (prior year: 66 thousand) with a lower cost per lead (CPL) of EUR 25.55 (prior year: EUR 26.64).

Based on preliminary calculations, the company therefore generated billings of EUR 161.2 million in the first six months of 2018 (prior year: EUR 112.8 million, +42.9%), revenues of EUR 19.4 million (prior year: EUR 13.0 million, +49.9%) and a gross margin of 12.1% (prior year: 11.5%).

With estimated 378 thousand new customers in the first six months of 2018 (prior year: 161 thousand), the total number of customers registered with Lotto24 rose by 35.3% to 1,951 thousand (prior year: 1,442 thousand) – despite consistently strong competition. In addition to the jackpot-related increase in marketing activities, the company launched a test run of comparatively more expensive TV commercials in March 2018.

Despite the resulting increase in marketing costs in the first six months of 2018 to EUR 9.7 million (prior year: EUR 4.0 million), CPL of EUR 25.54 for the first six months of 2018 was on previous year’s level (EUR 25.13); according to preliminary calculations, EBIT slightly improved to EUR 0.7 million during the first six months of 2018 (prior year: EUR 0.4 million).

Lotto24 AG continues to expect increased marketing expenditure in 2018 as a whole in order to extend its position as the leading online provider of state-licensed lotteries. Due to the positive development of business in the first half of 2018, the company now anticipates an increase in billings of 25% to 30% (previously: 15% to 20%), strong growth in new customers (previously: a growing number of new customers) and a year-on-year increase in CPL (unchanged).

In addition, Lotto24 continues to expect a slight improvement in gross margin compared to the previous year. Depending on the further progress of external conditions – especially the jackpot trend – and marketing investments to attract new customers, both EBIT and net profit are expected to remain above the break-even mark.