JAXX AG / Final Results
31.03.2010 19:31
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JAXX maintains course of growth
- Revenue from continuing activities increases by 15 % to EUR 114.5
million
- Fourth-quarter EBIT positive
- EBIT for 2009 of EUR -2.8 million (previous year: EUR -7.4 million)
- Negotiations on sale of pferdewetten.de investment
Altenholz, March 31, 2010 - The gaming specialist JAXX AG (Deutsche Börse
Prime Standard; ISIN DE000A0JRU67) today publishes its 2009 Annual Report.
The accounts show that the JAXX Group maintained its course of growth in
the 2009 financial year. Despite its exit from the German lottery market
and the difficult wider economic situation, it succeeded in increasing
consolidated revenue from the continuing operations by 15 percent, from EUR
99.6 million in the previous year to EUR 114.5 million in 2009.
Sports betting again brought in the greater part of consolidated revenue in
the 2009 financial year and now accounts for 79 percent of revenue. Revenue
from sports betting climbed by 30.4 percent compared with the previous year
to EUR 90.6 million. The Lottery & Gambling segment contributed 20 percent
or EUR 23.2 million towards consolidated revenue. Rapid growth for casino
and poker products together with lottery business in Spain did not yet
compensate entirely for the sharp drop in revenue prompted by the pullout
from the German market.
Disposal of pferdewetten.de AG planned
Horse betting represented only one percent of total revenue because the
activities of the pferdewetten.de AG investment, which previously made up
the bulk of this segment, are reported separately as discontinued
operations. As part of the restructuring of the JAXX Group that was kicked
off in the third quarter and the associated decision to focus on
high-revenue, highly profitable business areas, JAXX is seeking to dispose
of its 65.1 percent interest in Pferdewetten.de AG. Initial negotiations
with potential customers have already taken place. In keeping with the
rules of IFRS 5, the economic impact on JAXX AG of a possible sale is
presented by reporting the interest separately as discontinued operations
in the Consolidated Financial Statements.
Fourth quarter break even
JAXX posted revenue from continuing activities of EUR 37.3 million in the
fourth quarter of 2009. At earnings level, JAXX succeeded in returning to
profitability in a quarter in which operations made very good progress.
Nevertheless, EBIT (earnings before interest and taxes) for the continuing
operations of EUR 209 thousand were not sufficient to compensate fully for
the accumulated losses of the first nine months of the financial year.
The full-year EBIT for the continuing operations nevertheless improved from
EUR -7,360 thousand in the previous year to EUR -2,751 thousand in 2009
thanks to the strong first and fourth quarters.
Earnings after taxes for the continuing operations amounted to EUR -3,634
thousand in the 2009 financial year (previous year: EUR -13,907 thousand).
The earnings contribution of the discontinued operations was EUR -3,846
thousand (previous year: EUR -3,015 thousand). This amounted to a
consolidated net loss of EUR 7,480 thousand for 2009. In the previous year,
the loss was EUR -16,922 thousand due to elevated depreciation and
amortisation resulting from the woeful regulatory situation for gaming in
Germany. Earnings per share for 2009 amounted to EUR -0.46 (previous year:
EUR -1.08). Of this figure, the continuing operations accounted for EUR
-0.22 (previous year: EUR -0.89).
Liquidity improved in second half
Despite a welcome development in the fourth quarter, the negative
consolidated earnings for 2009 further restrict JAXX AG's scope for action.
Cash and cash equivalents fell from EUR 12.9 million to EUR 9.6 million.
Nevertheless, liquidity improved by EUR 0.5 million compared with mid-way
through the year. The equity ratio improved slightly from 41.8 percent to
42.1 percent essentially thanks to a smaller balance sheet total.
Restructuring delivers seven-digit savings
The changes being made to the corporate organisation under the umbrella of
the restructuring programme are scheduled to be largely completed by the
middle of 2010. The new structure is to reflect the stronger international
focus of the JAXX Group by now comprising country-specific sales units on
the one hand, and product-specific channels on the other.
By making increased use of synergy benefits and combining departments, it
is expected that cost savings running into the millions can be realised in
the course of the year. Initial effects from the restructuring programme
were realised in the second half of 2009 through personnel measures, the
capping of budgets and improved risk management for the betting products.
However, no significant effects are expected until the 2010 financial year.
Successful start to new year
The current 2010 financial year has got off to a very promising start and
appears to be building on the success of the fourth quarter. How the year
continues will depend substantially on the football World Cup in South
Africa, the advent of live betting, the growing popularity of the
pan-European EuroMillions lottery and the Spanish Christmas lottery, as
well as the planned disposal of pferdewetten.de AG.
Internationally, the JAXX Group is preparing for entry into new markets.
JAXX has initially decided to target the Italian and French markets in
2010. Once the licensing phases have been concluded, the market entry is to
be promoted with a limited advertising budget.
Overall, the Management Board expects the course of growth to continue. It
expects to see earnings move back into the black for the 2010 financial
year. Profitability should then increase in 2011. In the medium term, the
target is an EBIT margin of at least ten percent based on gross profit.
Key Figures
|[![CDATA[|[pre|]]]|]
2009 2008 Change
TEUR TEUR %
Revenue 114,544 99,633 +15.0
Sports Betting 90,626 69,479 +30.4
Lottery & Gambling 23,174 28,451 -18.5
Horse Betting 743 1,703 -56.4
EBITDA 4,790 5,648 -15.2
EBIT -2,751 -7,360
Earnings after taxes -3,634 -13,907
Earnings of discontinued operations -3,846 -3,015
Consolidates earnings -7,480 -16,922
Earnings per share (Euro) -0.46 -1.08
31.12.2009 31.12.2008
Cash and cash equivalents 9,562 12,861
Shareholders' equity 17,093 20,315
Equity ratio 42.1 % 41.8 %
|[![CDATA[|[/pre|]]]|]
The 2009 Annual Report will be made available for downloading today on the
websites www.deutsche-boerse.com and www.jaxx.ag.
About JAXX:
JAXX AG is a holding company with its registered office in Altenholz, near
Kiel, and invests in companies in the gaming industry. From betting, casino
and poker to bingo and lotteries, the companies that make up the JAXX Group
offer the most popular forms of state-licensed gaming via online platforms
such as www.jaxx.com, www.myBet.com and www.serviapuestas.es. Integrity,
customer centricity and reliably handled transactions are the top priority
in every case. It has investment companies in Germany, the UK, Spain,
Austria and Malta. The JAXX Group has a total of around 200 employees, 20
of who work for the holding company. The shares of JAXX AG have been traded
at Deutsche Börse since 1999 under ISIN DE000A0JRU67.
Contact:
JAXX AG
Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 8537 8847
Fax +49 (431) 8810 440
Mail stefan.zenker@jaxx.com
31.03.2010 19:31 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: JAXX AG
OstpreuÃenplatz 10
24161 Altenholz
Deutschland
Phone: +49 (0)431 88 104-0
Fax: +49 (0)431 88 104-40
E-mail: ir@jaxx.com
Internet: www.jaxx.com
ISIN: DE000A0JRU67
WKN: A0JRU6
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart
End of News DGAP News-Service
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DGAP-News: JAXX maintains course of growth
| Source: EQS Group AG