German online gaming provider Jaxx AG has announced that new partnerships and sales channels are proving to be a source of profitable growth for its DigiDis Digital Distribution Management SL subsidiary.
Altenholz-based Jaxx owns a 70 percent stake in the Spanish lottery services provider and revealed that it expects to see the volume of business double to $38.98 million by next year with profits trebling.
Stefan Haenel, Finance Director for Jaxx, stated that he had previously expected the subsidiary to merely become profitable but is now looking forward to the Madrid-based firm posting a profit of $649,000.
Shortly after tickets for the El Gordo Christmas lottery went on sale, DigiDis secured a partnership with MSN, one of the largest online service providers. Preceding this was an agreement with Spain's largest publisher, Prisa, the company behind daily newspaper El Pais. DigiDis' online network, which also includes partners such as Yahoo and Terra, is now used for marketing Spanish lotteries and the pan-European EuroMillions.
“This year, we will be able to reach Spain's entire Internet community with our lottery products,” said Sascha Badelt, Managing Director for DigiDis.
DigiDis stated that it had also enlisted the services of one of the largest call centres in Spain for telesales and launched new syndicate products for EuroMillions and various Spanish lotteries. Jaxx revealed that these products are based on concepts that it developed for the German market.
“Our business success in Spain is emerging as a key strategic factor,” said Haenel.
“Whereas lottery agency business in Germany has been paralysed by the regulatory debate raging there, we are exporting our systems and business models profitably to other European markets. We expect that as early as next year, business in Spain will go a long way towards compensating for the expected sales downturn in Germany.”