Lotto24 claims positive start to 2016 as revenue rises in Q1

Lotto24 has cited the impact of new customer acquisition as one of the main reasons behind a year-on-year increase in revenue during the three months to March 31, 2016.

In a preliminary results announcement, the German online lottery operator said that revenue in the first quarter amounted to €4.4 million ($4.9 million), up 85% on the €2.4 million posted in the corresponding period last year.

Billings in the first three months of the year also climbed by approximately 66% year-on-year to €41.4 million, while gross margin increased from 9.5% to 10.7%.

Earnings before interest and tax at the firm improved from a loss of €3 million in the first quarter of last year to a negative of €2.1 million in the first three months of 2016, while net result for the period also grew from negative €2.6 million to a loss of €900,000.

Lotto24 also noted that due to the jackpot-related expansion of marketing activities in the period, the brand’s marketing expenses increased to €2.7 million.

In a statement, Lotto24 said: “New customer acquisition made particularly strong progress in the first quarter of 2016.

“Whereas the ‘Lotto 6aus49’ lottery recorded only small jackpots during the reporting period, ‘EuroJackpot’ reached €75 million in March – the second-highest amount in the history of this European lottery.”

The company plans to publish its full quarterly announcement on May 12.

Related article: Lotto24 reveals revenue growth despite continued losses