Tipp24 adjusts full-year forecasts after jackpot win

Online gambling operator Tipp24 is to adjust its full-year forecasts after a player of its MyLotto24 service won a jackpot prize of around €44 million ($57.7 million).

Although 74% of the prize payout is covered by hedging instruments that have been established by MyLotto24, the operator said that consolidated earnings before interest and tax (EBIT) for 2014 would take a hit of about €5 million.

Although consolidated revenue will be hit by the prize payout, the indemnity payment will be accounted for as other operating income and will increase the total operating performance accordingly.

Assuming that a normal course of business will continue during the rest of 2014, Tipp24 has lowered its current EBIT forecast of €15-25 million to €10-20 million.

In addition, the previous revenue forecast of €135-145 million has now been lowered to approximately €90-100 million based on the same assumptions.

Last month, iGaming Business reported that Tipp24 was also forced to revise its earnings outlook after suffering a fall in revenue during the first half of the year.

source : www.igamingbusiness.com

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