German sportsbetting firm enjoys a more positive year
The Germany-based sportsbetting company Jaxx AG has released its full year 2009 results, posting a 15 percent improvement in revenues to Euro 114.5 million, and a positive fourth quarter EBITDA
EBITDA over the year showed a lower loss at Euro 2.8 million (FY 2008: - Euro 7.4 million) despite the company exiting the German lottery market and the depressed economic conditions pertaining throughout much of the year.
The company informed investors of progress in selling its 65.1 percent interest in the horse betting site pferdewetten.de. As part of the restructuring of the group commenced in Q3 2009 and the associated decision to focus on high-revenue, highly profitable business areas, Jaxx is seeking to dispose of its interest in Pferdewetten.de AG, and initial negotiations with potential customers have already taken place.
Sports betting again brought in the greater part of consolidated revenue in the 2009 financial year and now accounts for 79 percent of revenue. Revenue from sports betting climbed by 30.4 percent compared with the previous year to Euro 90.6 million.
Lottery and Gambling operations contributed 20 percent or Euro 23.2 million towards consolidated revenue, but the rapid growth for online casino and poker products together with the Jaxx lottery business failed to compensate entirely for the sharp drop in revenue prompted by the pullout from the German market.
Quarter 4 2009 revenues reached Euros 37.3 million, and at the earnings level, the group succeeded in returning to profitability in a quarter in which operations made good progress. Despite this EBITDA of Euro 209 000 was not sufficient to compensate fully for the accumulated losses of the first nine months of the financial year.
Earnings after taxes in FY 2009 amounted to Euro - 3 634 000 (FY 2008: Euro -13 907 000, and the company generated a consolidated loss of Euros 7 480 000 for 2009 - lower than the previous year, where consolidated losses amounted to Euros 16 922 000.
Cash and cash equivalents fell from Euros 12.9 million to Euros 9.6 million.
The extensive restructuring program carried out at Jaxx are nearing completion and effected millions in costs savings, Management reported. The new structure is to reflect the stronger international focus of the Jaxx group by now comprising country-specific sales units on
the one hand, and product-specific channels on the other.
By making increased use of synergy benefits and combining departments, it is expected that cost savings running into the millions can be realised in the course of the year.
Jaxx is already reporting a brighter picture going into the new financial year, with Q1 off to a good start and the prospect of good business from the fottball World Cup, the advent of live betting, the growing popularity of the pan-European EuroMillions lottery and the Spanish Christmas lottery, as well as the planned disposal of pferdewetten.de AG.
Jaxx is preparing for entry into new markets, with Italy and France in its sights once licensing is achieved. Overall, the Management Board expects the course of growth to continue, with earnings moving back into the black for the 2010 financial year and an increase in profitability in 2011.
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