JAXX AG / Quarter Results
06.05.2010 10:08
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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|]]]|]
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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 starts year with positive result
| Source: EQS Group AG