Jaxx AG quarterly revenues up 26%, EBITDA down

The German internet gambling company Jaxx AG appears to have enjoyed an improved first quarter 2010, judging by its latest numbers, which show revenues up 26% on the corresponding period last year.

Quarterly revenues reached €31.9 million, with growth driven mainly by a 41.6% rise in sports betting, which rose to €25.2 million, generating improved gross profits of €5.4 million - a rise of 14% on margins of 21% (Q1/2010: 27%).

However, the improvements did not permeate through to EBITDA, which fell from €2.1 million in Q1/2009 to €1.6 million in Q1/2010.

Consolidated earnings for the quarter went €81,000 into the red ink, a serious decline from Q1/2009's profit of €91,000.

Management is betting on an improvement in results through the World Cup in South Africa next (June) month , with subsidiary My Bet planning to launch a live betting service in time for the start of the World Cup action.

"All in all, the World Cup means that higher revenue is expected in the second quarter," management advised shareholders.

"Increased marketing spending aimed at generating new customers is, nevertheless, initially likely to be a burden on earnings. Based on a larger customer base, a lasting improvement in earnings in the sports betting segment is then expected in the second half of the year.

"From an economic viewpoint, it remains the expectation of the management board that rising revenues will lead to a positive result for the 2010 financial year."

Source: InfoPowa News