Tipp24 reinstates forecast after jackpot error
Lottery operator returns to original EBIT forecast after admitting a 44m jackpot win had been "reported mistakenly"
London-based lottery operator Tipp24 has reinstated its original EBIT forecast for 2014 after discovering a previously announced jackpot had been reported mistakenly.
The company yesterday revised down its 2014 EBIT forecast by 5m to 10-20m after revealing a secondary lottery through its MyLotto24 subsidiary had been won in August, with a reported jackpot pay-out of 44m expected to hit the company’s bottom line.
However, this morning Tipp24 issued a statement confirming it had withdrawn its report after further routine checks discovered the jackpot win had been reported mistakenly.
“As a result, Tipp24 reinstates its previous forecast for the current fiscal year, which had been published on 6 August 2014,” the statement read.
The operator offered no explanation as to why the error had occurred.
The company now expects to meet EBIT expectations of 15-25m for the 2014 financial year, a level outlined after its Q2 results revealed a 90% side in profits on the back of “higher than anticipated” operating costs.
Tipp24’s share price slid more than 10% in early morning trading yesterday to 31.22p before rebounding on this morning’s announcement, climbing to 33.57p.