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Jumbo Interactive (ASX:JIN) - Founder and CEO, Mike Veverk
Founder and CEO, Mike Veverk
Source: Queensland Times
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  • Lottery operator Jumbo Interactive (JIN) delivered a nine per cent increase in revenue for H1 FY21 of $40.9 million
  • Net profit after tax was up 0.5 per cent to $16.3 million while underlying earnings before interest, tax, depreciation and amortisation was also up 3.7 per cent to $24.1 million
  • In the half, the number of large jackpots was down 35 per cent to 15 while aggregate division one jackpots were also down 52 per cent to $510 million
  • In mid-November, Jumbo’s subsidiary entered a new partnership with its first government customer, LotteryWest
  • Under the partnership, the subsidiary, TMS Global Services, will provide its online software platform and services for up to 10 years
  • As a result of positive cash generation, Jumbo has declared a fully franked dividend of 18 cents which will be paid on March 19
  • Shares in Jumbo are down 1.73 per cent on the market and are trading at $14.24

Lottery operator Jumbo Interactive (JIN) delivered a nine per cent increase in revenue for H1 FY21 of $40.9 million.

Total transaction value was up 26 per cent over the prior corresponding period (pcp) to $233 million while net profit after tax and amortisation was up a slight 0.5 per cent to $16.3 million.

Underlying earnings before interest, tax, depreciation and amortisation was also up 3.7 per cent to $24.1 million.

Jumbo credits these increases to the evolving managed services and software-as-a-service businesses.

“We are delighted with the group results which show our new business segments helping to lift results in periods when the jackpot cycles are low,” CEO and Executive Director Mike Veverka stated.

Operations

In the half, the number of large jackpots was down 35 per cent from 23 in the pcp to 15 this half.

Aggregate division one jackpots were also down 52 per cent from $1.07 billion the pcp to $510 million this half.

In mid-November, Jumbo’s subsidiary entered a new partnership with its first government customer, LotteryWest.

Under the partnership the subsidiary, TMS Global Services, will provide its online software platform and services for up to 10 years.

LotteryWest will oversee the marketing strategy while Jumbo will manage customer support.

Despite the agreement extending for 10 years, the initial term covers three years with the option to extend for a further seven years.

Dividend

As a result of positive cash generation, Jumbo has declared a fully franked dividend of 18 cents which will be paid on March 19, 2021.

Shares in Jumbo are down 1.73 per cent on the market and are trading at $14.24 at 1:16 pm AEDT.

JIN by the numbers
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