JAXX AG / Final Results 31.03.2010 19:31 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 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|]]]|] --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------
DGAP-News: JAXX maintains course of growth
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