Lotto24 remains upbeat despite continuing losses

Lotto24 remains upbeat despite continuing losses

Tuesday, March 29, 2016 Totally Gaming
The operator said it was able to exit its initial start-up phase in 2015

Petra von Strombeck, chief executive of German online lottery operator Lotto24, has said that the company expects to achieve financial growth this year, despite suffering a fourth consecutive year of loss.

Earnings before interest and tax (EBIT) for the 12 months through to December 31, 2015, came in at a loss of €13.4m ($15m). The figure does represent a slight improvement on the loss of €14.2 million posted in the previous year, but comes despite the company making a number of key investments during the 12-month period.

Aside from these losses, Lotto24 was able to post year-on-year revenue growth, with this result up 75 per cent to €13.5m.

Billing also jumped by 67 per cent to €136.3m, while net results improved from a loss of €16m to a negative figure of €10.8m.

Von Strombeck was keen to focus on the positive results, stating that the firm is now well positioned to pursue growth targets in the current year. The chief executive also said that despite ongoing losses, the brand was able to expand its market leadership and exit its initial start-up phase in 2015, placing it in a much stronger position than 12 months ago.

TotallyGaming.com says:

A fourth consecutive year of loss at Lotto24 will be a concern for Von Strombeck and her team, but the fact that losses have been cut, if only by a small margin, will come as some relief. With revenue and billings also on the up, it shows that the operator’s services are still running smoothly and attracting customers, which will stand it in good stead for 2016 and, possibly, help the brand hit the growth targets outlined by Von Strombeck.

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