May 20 - Shifting strategies in the wake of industry challenges has shown to
be the best thing to do for many companies in today's industry. Fluxx AG
proved that a change in market focus could improve matters significantly, if the
results of its first quarter revenues are anything to go by.
The company, which used to serve the Germany lottery market, was required to
seek out other markets after the German government introduced its State Treaty
on Gambling legislation. The tough new laws clamped down on internet gambling in
the country, and Fluxx AG expanded its operations to the European gaming market
instead.
As a result, the company reported a 102% increase in first quarter revenues
for 2008, pushing revenues up to 28.3 million Euros.
Fluxx AG shares traded nearly 7% higher at 2.68 Euros a share this week,
following the announcement of its revenue growth.
The main contributor to these impressive figures was the sports betting
sector, which contributed 15.2 million Euros to Fluxx AG's revenue, compared
with 7.6 million Euros in the first quarter of the previous year.
Another successful strategic move made by Fluxx was the partial acquisition
of Sportwetten.de, which increased horse betting revenue sixty fold to 7.1
million Euros. Sportwetten.de recently entered into a partnership agreement with
the American Magna Entertainment which will allow the company to offer betting
on races that take place in the United States.
A disappointing result has been from the company's lottery sector, which
showed a decline of 5% to just under 6 million Euros.
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