DGAP-News: JAXX satisfied with balanced business performance in first half of 2011
(firmenpresse) - DGAP-News: JAXX SE / Key word(s): Half Year Results
JAXX satisfied with balanced business performance in first half of
2011
11.08.2011 / 10:10
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JAXX satisfied with balanced business performance in first half of 2011
- Gross revenue climbs 28% in first half-year to EUR81.4 million
- Earnings reduced by wins by favourites and marketing in second quarter
- Strong second half-year anticipated
Kiel, 11 August 2011 - JAXX SE (Deutsche Börse, Prime Standard, ISIN
DE000A0JRU67) today published its report on the first half of 2011. Its
gross revenue has increased by 28% in first half of the year to EUR81.4
million (6M 2010: EUR63.7 million). As a result of the weaker margin in the
second quarter, revenue from continuing operations rose relatively slowly
in the first six months by 12% to EUR26.9 million (6M 2010: EUR24.1
million). In spite of the high payouts in the second quarter, which caused
low margins for nearly all bookmakers on account of the large number of
wins by favourites by the end of the European football season, JAXX
completed the first half-year with an almost break-even result of EUR-189
thousand (6M 2010: EUR599 thousand).
In the second quarter, gross revenue climbed by nearly 24% to EUR39.1
million (Q2 2010: EUR31.7 million). Revenue increased by 3% as against the
second quarter of the World Cup year of 2010 to EUR12.3 million (Q2 2010:
EUR11.9 million).
myBet.com, the sports betting portal of the JAXX Group, further expanded
its customer base on the Internet even though a number of marketing
partners were still restrained regarding advertising gambling given the
ongoing regulatory debate. In total, myBet.com had almost 800,000
registered users by the middle of the year. At 17,400, the average number
of active users per month was down on the previous year, though the World
Cup had generated substantial interest in sports betting. Thanks to
successful cross-selling activities, myBet.com has increased the average
monthly stake from EUR154 to EUR275 per active customer.
Given the planned increase in marketing expenses, the weak overall margin
of 11.8% (Q2 2010: 20.0%) led to a decline in operating EBIT from
continuing operations for the quarter to EUR-0.4 million (Q2 2010: EUR52
thousand). Looking at the first six months of the year, EBIT fell from
EUR0.6 million in 2010 to EUR-0.2 million in 2011. However, consolidated
net loss improved from EUR-0.7 million in the previous year to EUR-171
thousand as there was a significant improvement in the contribution to
earnings from discontinued operations (business attributable to the
available-for-sale investment in pferdewetten.de).
Mathias Dahms, CEO of JAXX SE said: 'Overall we can be very satisfied with
the performance of our business, even though the high number of wins by
favourites cost us a lot of money in the second quarter - but that is a
bookmaker's risk and it is part of the business. The trend in growth is
intact, however, customer values are developing very positively and the
company has turned around. All we need now is a sensible regulatory basis
for gambling in Germany. And this is very close now - if the state
government in Schleswig-Holstein keeps its word and enacts its new law as
planned at the end of August. The other states will then have to come to
their senses as otherwise they will be unable to share in the positive
development in Schleswig-Holstein. We will then see a domino effect.'
Outlook
The debate surrounding the future regulation of the German gambling market
will enter a critical phase in the second half of 2011. According to
current information, it can be assumed that the parliament in
Schleswig-Holstein will adopt its own law at the end of August. A licence
could therefore be expected to be issued at the start of 2012. JAXX SE is
confident that it and its subsidiaries satisfy the licence requirements and
will receive the necessary permits.
However, it remains to be seen how far the other states fall into line with
Schleswig-Holstein. However, the other states - particularly those governed
by the SPD - seem largely unwilling to come round to a more liberal course,
meaning that an agreement is currently considered unlikely.
While Germany is still waiting for consistent regulations, JAXX is
preparing to enter new European markets: myBet.com is expected to receive
its Italian licence in the coming weeks, allowing it to launch in Italy
before the end of the second half of the year. The licensing process in
Spain is expected to start by the end of the year. In Belgium, myBet.com
received a licence for its shops in July 2011 and is now planning to expand
its online operations.
At an operational level, the JAXX Group's business will recover markedly
after the summer break with the start of the new football season. Rising
customer values, new betting shops, the widening of the product offering
and a number of optimisations in operating processes are driving
expectations for clear increases in revenue and income in the second half
of the year.
In line with planning, the marketing budget will be reduced to a low level
in the second half of the year. In addition, a number of optimisations in
payments and the commission structure in addition to measures to enhance
customer activity implemented in the second quarter will have a tangible
effect from the third quarter.
The Management Board is therefore standing by its forecast of ending the
2011 financial year with significant revenue and earnings growth in a
market environment still hampered by regulatory conditions. Gross revenue
will be between EUR170 and EUR200 million with EBIT of between EUR1.0 and
EUR2.0 million.
Key figures for 6M/Q2 2011 (continuing operations):
6M 2011 6M 2010 Cha- Q2 2011 Q2 2010 Cha-The report is available for download in the course of today on the websites
nge nge
EUR EUR % EUR EUR %
'000 '000 '000 '000
Gross revenue (2010: 81,410 63,661 +27.9 39,132 31,673 +23.5
Revenue)
Revenue 26,888 24,063 +11.7 12,339 11,946 +3.3
Sports Betting 10,546 10,282 +2.6 3,869 4,678 -17.3
Casino&Poker 9,065 5,806 +56.1 4,697 3,086 +52.2
Lotteries 6,322 6,904 -8.4 3,158 3,268 -3.4
Net gaming revenue 26,632 23,798 +11.9 12,211 11,816 +3.3
(NGR)
EBITDA 1,863 2,521 -26.1 713 919 -22.4
EBIT -189 599 -382 52
Consolidated earnings -171 -674 +74.6 -246 -593 +58.4
Earnings per share -0.01 -0.05 -0.01 -0.04
(EUR)
30/06/ 31/12/
11 10
Cash holdings 11,277 5,500
Shareholders' equity 19,825 13,933
Equity ratio 45.8 % 38.2 %
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, Malta and Belgium. 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(at)jaxx.com
End of Corporate News
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11.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: JAXX SE
Jägersberg 23
24103 Kiel
Germany
Phone: +49 (0)431 88 104-0
Fax: +49 (0)431 88 104-40
E-mail: ir(at)jaxx.com
Internet: www.jaxx-se.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
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