Insurance snub hurts Tipp24

Hamburg-based online lottery operator Tipp24 AG has been forced to restate its financial forecasts for 2009 following the refusal of its insurance company to pay out on a claim connected with a large jackpot win in the autumn of last year.

The German firm stated that its MyLotto24 Limited subsidiary awarded a record jackpot of €31.7 million to one lucky player in September and had hoped to claim back €21.7 million in insurance.

However, the unnamed insurer is refusing to pay and MyLotto24 has initiated legal proceedings seeking the full insurance sum.

“Irrespective of Tipp24’s view that MyLotto24 Limited has a valid claim against the insurance company, the refusal to pay means that, at the level of the consolidated annual financial statements of Tipp24, the insurance amount may no longer be carried in the consolidated balance sheet and income statement,” read a statement from Tipp24.

As a result, Tipp24 stated that its consolidated operating earnings before interest and tax would be at least €21 million while total operating performance should reach a minimum of €73 million. Revenues will not be affected by this adjustment with Tipp24 stating that it had increased its consolidated cash and equivalents at the end of 2009 to €81 million, which was €15 million more than at the conclusion of the previous year.