JAXX AG / Quarter Results 06.05.2010 10:08 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 starts year with positive result - First-quarter revenue rises to EUR 32.0 million - Sports betting again growth driver - Football World Cup looming large Altenholz, May 6, 2010 -- JAXX AG (Deutsche Börse, Prime Standard, ISIN DE000A0JRU67) has started the 2010 financial year with a positive figure for consolidated earnings before interest and taxes (EBIT). Although it was not possible to match the previous year's excellent tally of EUR 717 thousand, the gaming specialist nevertheless posted sound EBIT from continuing operations of EUR 547 thousand. Revenue up by over one-quarter Consolidated revenue from continuing operations rose by 27 percent in the first quarter of 2010 to EUR 32.0 million. The growth driver was again sports betting, which actually grew by more than 40 percent to EUR 25.2 million. As a result of the narrowing of the bookmaking margin to a nevertheless comfortable 21 percent, the gross profit from sports betting business grew by only 14 percent to EUR 5.4 million. The previous year's first quarter had brought an exceptionally high margin of 27 percent. Lottery business, which is now generated predominantly in the Spanish, Austrian and UK markets following the ban on internet trading in Germany, contributed EUR 3.6 million towards consolidated revenue. Proceeds from casino and poker games on the international web platforms www.myBet.com and www.jaxx.com amounted to EUR 2.7 million in the first quarter of 2010. Restructuring measures proving effective The measures initiated through the restructuring programme in the second half of 2009 achieved their full impact for the first time in the quarter under review, with a wide scope of non-revenue-related expenses significantly reduced. A takeover agreement was furthermore reached with the minority interest in the myBet Group. In April JAXX AG increased its holding in QED to 99.4 percent through the issuance of 1,760,616 new shares at EUR 1.69 each. Earnings before interest, taxes, depreciation and amortisation (EBITDA) from continuing operations fell from EUR 2,142 thousand in the prior-year period to EUR 1,600 thousand in the first three months of 2010. The consolidated earnings after the first three months of the year amounted to EUR -81 thousand. In the previous year, the JAXX Group had posted slightly positive earnings of EUR 90 thousand. The profit contribution of the discontinued operations was EUR -116 thousand (previous year: EUR -167 thousand). Earnings per share for the first quarter of 2010 were EUR -0.01, compared with EUR 0.01 Euro in the first quarter of 2009. Outlook The defining occasion over the next few months will be the football World Cup in South Africa. The event's high popularity and the wider range of betting products available mean that a noticeable rise in the number of bets placed is expected. myBet is planning to launch a live betting service in time for the start of the World Cup, adding to the range of products on offer. The web presence of the JAXX.de and JAXX.com platforms has been revamped and made even more customer-friendly. All in all, the World Cup means that higher revenue is expected in the second quarter; increased marketing spending aimed at generating new customers is nevertheless initially likely to be a burden on earnings. Based on a larger customer base, a lasting improvement in earnings in the Sports Betting segment is then expected in the second half of the year. The market entry in France is likely to be delayed by a few months so that it can first be observed how the market's liberalisation is being handled in practice. The French Senate recently imposed significantly tougher hurdles to entry for private operators and successfully participating in the market now entails considerable costs. It is furthermore expected that the EU Commission will be closely scrutinising the French legislation. The company continues to pursue the goal of entering the Italian market with a limited advertising budget. From an economic viewpoint, it remains the expectation of the Management Board that rising revenue will lead to a positive result for the 2010 financial year. Key figures for Q1/2010 (continuing operations) |[![CDATA[|[pre|]]]|] Q1/2010 Q1/2009 Change EUR '000 EUR '000 % Revenue 31,987 25,267 +26.6 Betting stakes 25,240 17,823 +41.6 Commissions & handling fees 2,649 3,684 -28.1 Gambling fees 3,867 3,525 +9.7 EBITDA 1,600 2,142 -25.3 EBIT 547 717 -23.7 Consolidated earnings -81 90 Earnings per share (EUR) -0.01 0.01 31/03/2010 31/12/2009 Cash holdings 10,009 9,562 Shareholders' equity 17,055 17,093 Equity ratio 45.8% 42.1% |[![CDATA[|[/pre|]]]|] The Quarterly Report will be made available for downloading in the course of 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 160 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 email stefan.zenker@jaxx.com 06.05.2010 10:08 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 starts year with positive result
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