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JAXX records highest quarterly revenue in history of company


JAXX SE / Key word(s): Preliminary Results

31.01.2011 / 08:30

JAXX records highest quarterly revenue in history of company

- Record revenue in Q4 rise to EUR 41.0 million

- Q4 EBIT negative due to intensified marketing activities

- Capital increase planned to finance growth

Kiel, January 31, 2011 -- JAXX SE (ISIN DE000A0JRU67), listed in the Prime Standard of Deutsche Börse, achieved consolidated revenues from continuing operations of EUR 41.0 million in the fourth quarter of 2010 according to provisional, unaudited figures - the highest quarterly revenue in the history of the company. This compares with EUR 37.3 million in the prior-year quarter (+10 percent). Compared with Q3 2010, revenues rose by 60 percent.

Growth was driven by the sports betting area, on which the JAXX Group has been focusing since its restructuring last year. In the fourth quarter, EBIT from continuing operations amounted to EUR -1.5 million (previous year: EUR 0.3 million), this figure being influenced on the one hand by a weak performance in the crisis-hit Spanish market and on the other hand by a significant increase in the marketing budget for the expansion of sports betting business.

This is part of the JAXX Group's new strategy. It is generally expected that the sports betting market in Germany is about to undergo comprehensive liberalisation. JAXX is now preparing for this process with the myBet brand and strengthening its market position. JAXX expects that over the next few months the federal state governments will prepare new legislation, to take effect from 2012, that will permit the licensing of private sports betting in Germany. In September 2010 the ECJ had prepared the way for liberalisation in Germany through its high-profile ruling. Through the myBet brand, JAXX aims to establish its position among the top three sports betting providers.

For the 2010 financial year as a whole, provisional figures show that the JAXX Group increased its revenue from continuing operations by 17 percent to EUR 134.0 million (previous year: EUR 114.5 million). EBIT remained negative due to the increased marketing costs and one-off expenses for restructuring as well as weak business in Spain, but improved year on year from EUR -2.8 million to EUR -2.4 million.

At the end of the year, the additional financial resources being channelled into marketing were bringing in an average of 4,500 new active sports betting customers per month, compared with a previous monthly average of just 2,500. In the shop segment, almost 90 new shops were opened in the last month' of the year. myBet aims to become market leader in the offline segment.

To finance its further growth, JAXX SE intends to implement a capital increase by way of a rights issue that will be suitably timed to respond to positive market signals and will be aimed at exclusively the company's existing shareholders. JAXX intends to use the proceeds of the issue to acquire around 80,000 new active customers in 2011, open some 400 new myBet betting shops and further develop the myBet brand through sponsorship measures.

JAXX will publish the 2010 Annual Report with the final, audited figures and a detailed outlook on March 31, 2011.

Disclaimer:

This press release contains statements about the future development of the JAXX Group. These future-related statements are based on the current expectations, conjectures and forecasts of the Management Board as well as on information currently available to it, and have been compiled to the best of its knowledge. With regard to such future-related statements, no guarantee can be given that the future developments and results described will materialise, nor any liability accepted if they do not. Rather, these future developments and events are dependent on a large number of factors. They entail risks and imponderables that are outside the company's control and are based on assumptions that may prove to be inaccurate. Notwithstanding the legal provisions on the correcting of forecasts, we give no undertaking to update the future-related statements made in this press release. Please see our company website www.jaxx-se.com for all important financial dates.

About JAXX:

JAXX SE, listed in the Prime Standard of Deutsche Börse, is a financial holding company with holdings in international companies in the gaming industry. JAXX currently holds interests in companies in Germany, the UK, Spain, Austria and Malta. JAXX SE has its headquarters in Kiel. The holding companies cover the entire spectrum of the games and gambling industry. Depending on national regulatory structures, they broker or market sports and horse betting, lotteries, and casino and poker games. The shares of JAXX SE have been traded at Deutsche Börse since 1999 under ISIN DE000A0JRU67.


Contact:
JAXX SE
Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 85 37 88 47
Fax +49 (40) 85 37 88 30
Mail stefan.zenker@jaxx.com



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