Online gambling operator Tipp24 has reported a significant drop in net profit during the nine months to September 30, despite having maintained a relatively stable level of revenue in the period.
Revenue for the first three quarters of the year amounted to €105.4 million ($131.3 million), a total that is slightly up on the €104.4 million achieved in the same period in 2013.
However, Tipp24 did report a significant drop in consolidated earnings before interest and tax, which fell from €26.2 million in the first nine months of 2013 to €11.1 million in the same period this year.
The operator put this loss down to an increase in personnel and other “other operating expenses in the context of building up new business fields, higher marketing expenses and increased hedging costs as well as consulting fees for the renewal of the hedging structure”.
A lower operating result also led to a slump on net profit for the nine-month period, falling from €18.4 million to just €1.1 million.
Dr. Hans Cornehl, chief executive officer of Tipp24, said: “After the first three quarters, revenues and earnings are in line with our revised forecast in early August.
“We are making good progress with the establishment of new businesses. At the end of September for instance, we started GeoLotto, an innovative geographical based online lotto game in the United Kingdom.”
source : www.igamingbusiness.com
