German betting and lotto games firm Tipp24 is considering a Frankfurt stock market debut this year, a company source said on August 25, as the country is gearing up to host soccer World Cup games next year.
The firm, which offers online access for lotto and betting games, said it would hold a news conference at its Hamburg headquarters on September 1 to announce half-year figures and "further important plans."
The source told Reuters that Tipp24's board will then unveil plans for an initial public offering (IPO) possibly this year.
"The firm is mulling an IPO this year, dependent on the outcome of the German elections (on September 18) and the overall capital market environment," the source said.
A company spokeswoman said an IPO was among the options being evaluated, but declined further comment.
Founded in 1999, Tipp24 posted earnings before interest and tax (EBIT) of more than 3 million euros ($3.69 million) on revenues of 154 million euros in 2004. It has given no 2005 forecast.
Tipp24 competes with local rival Fluxx.com, one of Germany's hottest stocks in recent years, which has risen 290 percent in the past 12 months. It was recently promoted to the small-cap SDAX index.
Another rival is Austria's BETandWIN.com, whose stock has jumped 437 percent in the same period.
Analysts see bright prospects for betting firms in 2006 when sports enthusiasts are expected to place many game bets at the soccer World Cup. Tipp24's top shareholders are investment firm Earlybird, which has just under 50 percent, and the management, with 40 percent. Earlybird is also an investor in mortgage savings plans broker Interhyp, which is aiming to float within 12 months.
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