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JAXX AG profits from rising demand for sports and horse betting

JAXX AG / Half Year Results

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JAXX AG profits from rising demand for sports and horse betting

- Sports and horse betting, together with international business, provide
dynamic sales boost in first half
- Consolidated sales rise by 86 percent to EUR 58.1 million
- Marked improvement in earnings situation

Altenholz, August 7, 2008 – The gaming specialist JAXX AG (formerly FLUXX
AG; ISIN DE000A0JRU67) today has published its report on the first half of
2008. As was already the case in the first three months, the State Treaty
on gaming which took effect in Germany at the start of the year again
produced a mixed picture in the business fortunes of the JAXX Group in the
second quarter of 2008 – though the general trend was clearly positive.

Whereas the areas that are not affected by the new regulations – sports and
horse betting, as well as lottery operations handled outside Germany -
continued to experience dynamic growth, lottery agency business in the home
market of Germany suffered considerably from the sales and advertising
restrictions.

During the second quarter, the JAXX Group nevertheless moved yet closer to
its goal of becoming economically independent of the German lottery market.
The lion's share of revenues is now generated outside Germany. Overall,
revenue was up by 73 percent in the second quarter compared with the
previous year, from EUR 17.3 million to EUR 29.8 million; SPORTWETTEN.DE
AG, which has been consolidated since the start of the financial year,
contributed EUR 6.9 million towards this total. Compared with the first six
months of the previous year, revenues were up 86 percent from EUR 31.3
million to EUR 58.1 million (SPORTWETTEN.DE AG: EUR 14.0 million). 56
percent of revenues came from the Sports Betting segment, 24 percent from
Horse Betting and 20 percent from Lottery.

Euro 2008 and the German Jumping Derby in Hamburg in June pushed up sales
to a record level, more than compensating for the traditionally weak
end-of-season months April and May. To consolidate the company's
independence further, these sporting events provided an opportunity to step
up the acquisition of new customers, and this in turn prompted an increase
in sales and marketing expenses. The result nevertheless showed a
considerable improvement year on year.

Earnings before interest and taxes (EBIT) improved significantly from
EUR -1.4 million in the second quarter of 2007 to EUR -0.2 million in the
second quarter of 2008. EBIT was up from EUR -2.2 million in the first half
of 2007 to EUR -0.5 million in  2008. The IFRS consolidated result in the
second quarter of 2008 amounted to EUR -0.3 million, as against EUR -1.1
million in the second quarter of 2007. For the six-month period, the result
was improved from EUR -1.7 million in 2007 to EUR -0.8 million in 2008. The
result largely tallies with the loss of the British subsidiary JAXX UK Ltd
due to start-up costs. SPORTWETTEN.DE AG contributed EUR 80 thousand to the
improved result.

The operating cash flow for the first half of 2008 was positive at EUR 0.7
million. The 62.4 percent interest in SPORTWETTEN.DE AG represented an
investment outlay of EUR 7.6 million.

Outlook

The focus for the company's further business development remains to secure
greater independence from the German lottery market, to expand
internationally and to achieve profitability.

'We expect to see a further clear improvement in our sales and financial
performance in the second half,' commented Stefan Hänel, Finance Director
of JAXX AG. 'The various measures designed to boost sales and reduce costs
that we implemented in the first half of the year can now take full
effect.' For instance, the first palpable synergy effects of integrating
the Sportwetten.de Group into the JAXX Group should begin to filter
through. The measures to dovetail the QED Group (myBet.com) more closely
with JAXX's international activities should also increasingly take effect.

August brings another major sporting event – the Olympic Games – and
betting business traditionally picks up again when the football season in
Europe kicks off. Tickets for the Christmas Lottery go on sale in Spain in
August, with prize money of more than EUR 2.5 billion making this Europe's
biggest lottery. A continuing decline in sales from domestic agency
business is expected due to the restrictive legal situation.

On the basis of the current situation, the Management Board of JAXX AG
stands by its expectations of double-digit sales growth and a clearly
positive result for 2008 as a whole.

Key figures for 1st half / 2nd quarter, 2008


                       H1 2008   H1 2007   +/-    Q22008   Q2
2007  +/-
                       € '000    € '000    %      € '000   € '000   %
Revenues                58,104    31,304    +86   29,828   17,287   +73
EBITDA                   3,921     3,875   +1,2    1,852    2,172   -15
EBIT                      -537    -2,159    +75     -159   -1,367   +88
Consolidated earnings     -790    -1,715    +54     -270   -1,078   +75
Earnings per share       -0.05     -0.12           -0.02    -0.08
(€)
                       30/06/08  31/12/07
                       € '000    € '000
Cash & cash              8,800    13,808
equivalents
Shareholders' equity    36,519    36,093
Equity ratio              59 %      61 %


The full 2008 First-Half Report will be published and available for downloading today on the websites www.deutsche-boerse.com and www.jaxx.ag. About JAXX: JAXX is a company specialising in the handling of lotteries and betting, with registered office in Altenholz, near Kiel. The necessary rights and licences and the technical and market-relevant expertise place JAXX in a position to be able to arrange any form of licensed gaming for consumers, using a variety of sales channels. In addition to the self-marketed services jaxx.de, jaxx.com, myBet.com, pferdewetten.de and Telewette, JAXX makes its products and services available to other companies, including AOL, freenet, Yahoo and Lycos. JAXX AG has been listed on the Frankfurt Stock Exchange (Deutsche Börse) since September 1999 (ISIN DE000A0JRU67); the group currently has around 180 employees. Contact: JAXX AG Investor Relations & Corporate Communications Stefan Zenker Tel. +49 (40) 85 37 88 47 Fax +49 (431) 88 10 44 0 Mail stefan.zenker@jaxx.com 07.08.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: JAXX AG Ostpreußenplatz 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, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------