PTA-News: AG: Clear earnings increase in Q3 2014 - guidance exceeded

11/10/2014, 10:00 AM (Source: pressetext)
Dusseldorf (pta010/10.11.2014/10:00) - Group figures for the first 3 quarters of 2014 (January 1 to September 30, 2014)

Announcement according to stock regulations

Dusseldorf (pta010/10.11.2014/10:00) - Group figures for the first 3 quarters of 2014 (January 1 to September 30, 2014)

- Earnings before taxes increased by EUR 6.3 million to EUR 17.9 (Q1-Q3 2013: EUR 11.6 million)
- Gross gaming revenue increased by 30.6% to EUR 80.7 million (Q1-Q3 2013: EUR 61.8 million)
- Clearly positive follow-on effects from international advertising campaigns for the World Cup in Brazil
- Stable assets structure - liquid funds and securities at EUR 28.7 million

Dusseldorf, November 10, 2014. In Q3 of 2014, the listed online sports betting and online gaming provider succeeded in surpassing the successes of the previous quarters and again increased the awareness of the brand through effective advertising campaigns surrounding the Football World Cup in Brazil.

Above average earnings growth:
In the reporting period, the positive growth in gross gaming revenue, the effects from the efficiency increases in marketing commenced in 2013 and continued in 2014, and unchanged other operating expenses all had clearly positive repercussions for the earnings growth of the AG Group. EBITDA increased in the first three quarters of 2014 to EUR 17.2 million - an increase of EUR 6.1 million year-on-year (Q1-Q3 2013: EUR 11.1 million).

The EBITDA guidance for the whole of the 2014 financial year has thus already been exceeded in Q3 2014. From the current perspective, the Board of Directors of the AG Group expects the positive earnings contributions to continue in Q4 2014 of the 2014 financial year.

EBIT also increased due to the positive developments in the reporting period by EUR 6.0 million to EUR 16.7 million (Q1-Q3 2013: EUR 10.7 million).

Due to the investment of the high level of liquid funds as well as the granting of short-term loans under arm's length conditions to the majority owners of AG, the Group financial results for the first three quarters of 2014 increased to EUR 1.2 million (Q1-Q3 2013: EUR 0.9 million).

In the first three quarters of the current financial year, the earnings before taxes (EBT) amounts accordingly to EUR 17.9 million and thus represents a year-on-year increase of EUR 6.3 million (Q1-Q3 2013: EUR 11.6 million). The highest contribution to earnings occurred in Q3 of 2014, with an EBT of EUR 8.6 million being generated between July and September 2014 (Q1 2014: EUR 8.3 million, Q2 2014: EUR 1.0 million).

Stable revenue development:
Gross betting and gaming revenue amounted to EUR 80.7 million in the Q3 of 2014 and was thus 30.6% above the figure for the same period in 2013 (Q1-Q3 2013: EUR 61.8 million). As the most important key figure in the e-gaming market, gross betting and gaming revenue represents the difference between the stakes played and customer winnings.

The gaming volume of AG amounted to a total of EUR 1,588.0 million in the first three quarters of 2014 (Q1-Q3 2013: EUR 1,342.9 million) and was thus 18.3% higher year-on-year.

Betting fees and gambling levies in the first 9 months of 2014, combined with the increase in gross betting and gaming revenue, were above the level of the same period of the previous year at EUR 9.4 million (Q1-Q3 2013: EUR 8.1 million). As a result, net gaming revenue also increased to EUR 71.3 million (Q1-Q3 2013: EUR 53.7 million).

Significant expansion of the customer base due to international advertising campaigns for the 2014 World Cup:
In the summer of 2014, was present in large parts of Europe with international, cross-media advertising campaigns during the Football World Cup in Brazil. In total, the advertising expense in the first nine months of 2014 amounted to EUR 34.2 million and was therefore 38.0% higher year-on-year (Q1-Q3 2013: EUR 24.8 million).

As of the reporting date, September 30, 2014, the AG Group has more than 3.9 million registered customers (September 30, 2013: 3.5 million).

The ongoing efficiency increases can also be clearly seen in other operating expenses. With expenses in the amount of EUR 9.6 million, the operating expense in the first three quarters of 2014 is exactly the level of last year (Q1-Q3 2013: EUR 9.6 million), despite a higher gaming volume.

Stable asset and capital structure:
Due to the recent high contributions during the current business period, Group equity amounted to EUR 53.7 million as of September 30, 2014 (December 31, 2013: EUR 44.6 million), which resulted in a Group equity ratio of 68.9% (December 31, 2013: 64.5%) despite the dividend payment in Q2 of the reporting period.

In addition, the AG Group has liquid funds and current securities in the amount of EUR 28.7 million as of September 30, 2014 (December 31, 2013: EUR 23.2 million). Furthermore, EUR 40.0 million in short-term loans to the main shareholder was recognized as of September 30, 2014. These loans were granted under arm's length conditions and jointly and severally collateralized by the owners of the majority shareholder.

The AG Group operates in the fields of online gaming and online sports betting. With 3.9 million registered customers, the company, which is listed on the Frankfurt Stock Exchange, is, together with its subsidiaries, one of the most successful gaming providers in Europe. The varied options offered on include sports betting, poker, casinos and games. has companies in Germany, Austria, Malta and Gibraltar. As of September 30, 2014, 252 employees contribute to the successful development of the Group. Via its Maltese companies, the Group holds licenses for online sports betting and gaming. The licenses entitle the company to organize and market online sports betting and online casinos respectively. Since 2009, AG has been a member of the Betclic Everest SAS Group, which is a leading French group operating in the online gaming and sports betting industry.


emitter: AG
address: Kronprinzenstraße 82-84, 40217 Düsseldorf
country: Germany
contact person: Mag. Klaus Fahrnberger
phone: +43 676 840 988 248

ISIN(s): DE000A0DNAY5 (share)
stock exchanges: entry standard in Frankfurt

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