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JAXX anticipating revenue of EUR 170 to 200 million for 2011

JAXX SE / Key word(s): Final Results

31.03.2011 / 10:17

JAXX anticipating revenue of EUR 170 to 200 million for 2011

- Growth for JAXX Group from sports betting, casino and poker

- Consolidated revenue for 2010 up 18.6 percent to EUR 135.8 million

- Liberalisation of German betting market expected

Kiel, March 31, 2011 - The gaming specialist JAXX SE (Deutsche Börse Prime Standard; ISIN DE000A0JRU67) today publishes its final, audited business figures for the year 2010. These reveal that the JAXX Group was able to increase the consolidated revenue from the continuing operations by 18.6 percent in the 2010 financial year, from EUR 114.5 million to EUR 135.8 million. Growth was driven by the sports betting, casino and poker areas, on which the JAXX Group has been focusing since its restructuring last year.

Earnings were held back by a weak performance in the crisis-hit Spanish market, the costs of group-wide restructuring and an increase in the marketing budget in the fourth quarter to expand the sports betting service myBet.com. Despite the revenue growth, earnings before interest and taxes (EBIT) of EUR -2.69 million therefore remained down at the same level as in the previous year (EUR -2.75 million). The difference of EUR -0.3 million compared with the provisional EBIT of EUR -2.4 million published at the end of January is the result of adjustments that can only be recognised in profit and loss following consultations with the auditor.

High growth rates achieved for sports betting, casino and poker

Sports betting again brought in the greater part of consolidated revenue in the 2010 financial year; as in the previous year it accounted for 79 percent of the total. Revenue from sports betting climbed by 27.0 percent year on year, from EUR 84.9 million to EUR 107.8 million. The gross profit (hold) realised from such activities rose by a much steeper 40.5 percent from EUR 14.6 million to EUR 20.5 million because the bookmaking margin was improved from 18.1 to 19.2 percent.

The revenue increase in the sports betting segment is mainly attributable to a sharp increase in the number of users: Total registrations soared from 596,000 to 724,000 in the course of the year. At the end of the 2010 financial year myBet.com furthermore had around 500 betting shops throughout Europe.

Revenue from casino and poker games climbed by 37.4 percent from EUR 9.4 million to EUR 12.9 million in the 2010 financial year. On the other hand revenue from lotteries fell 30.6 percent, from EUR 19.6 million to EUR 13.6 million. The marked downturn reflects how the former core business area involving German lotteries has faded away, especially as it could not be counterbalanced by growth in new markets last year in particular due to the critical economic situation in Spain.

Earnings after taxes for the continuing operations amounted to EUR -3.1 million in the 2010 financial year (previous year: EUR -3.6 million). The earnings contribution of the discontinued operations, which comprise the interest in pferdewetten.de AG that is available for sale, was EUR -1.1 million (previous year: EUR --3.8 million). This amounted to a consolidated loss of EUR -4.2 million for 2010 (previous year: EUR -7.5 million). Earnings per share for 2010 amounted to EUR -0.21 (previous year: EUR -0.46). Of this figure, the continuing operations accounted for EUR -0.15 (previous year: EUR -0.24).

Successful capital increase creates more room for manoeuvre

At the end of the year the JAXX Group had cash holdings of EUR 5.5 million. The extra funds of around EUR 6.0 million raised through the capital increase that was placed at the start of March 2011 are to be invested largely in marketing and branding in the 2011 financial year. The company is currently in discussion with a number of marketers and Bundesliga clubs about marketing measures to make the myBet.com brand even stronger. In March 2011 a two-year partnership between myBet.com and the Germany national handball team was agreed with the German Handball Federation (DHB).

Impending liberalisation of German betting market

Probably in the course of the second quarter of 2011, the Prime Ministers of the federal states will produce the draft version of a new State Treaty on gaming, which will make the offering of sports betting in Germany possible from 2012 within a clear set of rules. JAXX and its brand myBet.com are already preparing for this change and intend to strengthen myBet.com's market position by stepping up its marketing activities. Its aim is to establish myBet.com as one of the top three sports betting providers in Germany.

JAXX's aim for the 2011 financial year is to attract a total of 80,000 active new customers to myBet's online service and to open 400 more physical myBet betting shops. The lotteries area started the 2011 financial year with a much leaner structure. On this reduced basis, the segment is to achieve a high level of profitability and help to finance some of the capital expenditure in the Sports Betting segment.

The Management Board of JAXX SE expects to post consolidated revenue of between EUR 170 and 200 million for the 2011 financial year, with EBIT of between EUR 1.0 and 2.0 million.

Key figures for 2010

  2010 2009 Change
  EUR '000 EUR '000 %
Revenue (continuing operations) 135,838 114,544 +18.6
Sports Betting 107,802 84,888 +27.0
Casino & Poker 12,863 9,359 +37.4
Lotteries 13,562 19,553 -30.6
EBIT -2,687 -2,751 +2.3
Earnings after taxes -3,070 -3,634 +15.5
Earnings from discontinued operations -1,099 -3,846 +71.4
Consolidated earnings -4,169 -7,480 +44.3
Earnings per share (EUR) -0.21 -0.46  
  31/12/2010 31/12/2009  
Cash holdings 5,500 9,562  
Shareholders' equity 13,933 17,093  
Equity ratio 38.2 % 42.1 %  


The 2010 Annual Report will be published and available for downloading today on the websites www.deutsche-boerse.com and www.jaxx-se.com.

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.

Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 8537 8847
email stefan.zenker@jaxx.com

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