IR Releases

EM boosts betting business for JAXX AG


- European Championship and Deutsches Derby bring JAXX record sales and earnings
- Greater independence from German lottery market following successful expansion of betting business

The European Championship in football and the Hamburg Derby Week, Germany's largest flat racing event, have broken all the records at JAXX AG (formerly FLUXX AG, ISIN DE000A0JRU67). Sales, gross profit and new customer registrations for June all reached their highest level since JAXX AG ventured into sports betting at the start of 2006.

Consolidated sales from sports and horse betting scratched the EUR 10 million mark in June 2008. "We benefited particularly by avoiding one particular dreaded scenario: the favourites did not win either the European Championship or the Derby, and that enabled us to post a healthy profit," explained Stefan Hänel, Finance Director of JAXX AG.

The bookmaking margin was well above the average for the industry. Net betting income was correspondingly good: Never before has JAXX generated gross profit (hold) of more than EUR 2.0 million in a single month with its betting products.

The overwhelming portion of betting business is now generated outside Germany and therefore avoids the restrictive controls of the State Treaty on gaming. The controversial legislation in any case does not apply to horse betting. By successfully expanding its betting business, JAXX AG is gradually achieving greater independence from the German lottery market.

The number of new customers who registered for the JAXX Group's services in the course of the European Championship and Derby likewise easily topped the previous record. "Our carefully targeted advertising had the desired effect," added Stefan Hänel. "We achieved the best possible output during the European Championship at relatively little cost."