TOUGH TIMES FOR TIPP 24
7 August 2009
German gambling firm impacted adversely by
the German State Treaty of Gambling
For the first time in over eight years, German online
lottery firm Tipp24 AG has posted negative half-year
earnings following the implementation of the
monopolistic State Treaty On Gambling in Germany.
This week the company reported that it had
experienced a decline of Euro 6.8 million from its
German activities for the first six months of 2009
compared to a profit of Euro 5.4 million in H1 2008.
Revenues fell by a debilitating 92.3 percent to Euro 1.4
million.
The German firm revealed that its
earnings were further burdened by restructuring measures
made necessary by the introduction of the Treaty.
“After being forced to part company with the
majority of our German staff in the first quarter [see
previous InfoPowa report], we also gave up the majority
voting rights in our former English subsidiaries in
April as a further consequence of the State Treaty On
Gaming,” said Jens Schumann, Chairman for Tipp24’s
Executive Board.
“I am still convinced that key
aspects of the State Treaty will have to be changed.
Over the last years, Germany’s Federal States have lost
over seven billion Euros in stakes from this legislation
alone. This is money, which the states cannot replace,
that is now missing for important institutions in the
field of sport, social affairs and culture.”
Tipp24's non-German business - mainly in the UK - fared
better, growing its non-German earnings to Euro 29.75
million from a loss of Euro 952 000 in H1 2008. Overall
net profits increased to Euro 17.3 million from Euro 3.4
million.
The company anticipates that revenues
will rise to around Euro 85 million for FY 2009 with
operating profit before interest and tax achieving Euro
40 million.
Online Casino News Courtesy of
Infopowa
More news here.
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