Jumbo Interactive (ASX: JIN) has delivered a solid first-half FY25 performance, despite a quieter large jackpot environment. With revenue of $66.1 million and an underlying EBITDA of $30.6 million, the company continues to demonstrate the strength of its diversified lottery and SaaS business model.
CEO Mike Veverka highlighted the company’s adaptability in a challenging jackpot cycle:
“We’ve navigated a softer jackpot environment by refining our marketing strategies and cost base. The launch of our ‘Daily Winners’ Premium loyalty program has been a key success, boosting engagement in our core Powerball and OzLotto games. At the same time, our progress in Canada and the UK remains on track, supported by a strong balance sheet with over $50 million in available cash.”
A Closer Look at the Numbers
- Total Transaction Value (TTV): $453.4 million, down 6.4% due to lower jackpot activity.
- Revenue: $66.1 million, down 10.5% year-on-year.
- Underlying EBITDA: $30.6 million, down 12.9%.
- Underlying NPATA: $18.6 million, a 10.8% decline.
- Fully franked interim dividend: 24.0 cents per share, reflecting an 84.2% payout ratio.
Business Segment Breakdown
Lottery Retailing
With fewer large jackpots (24 vs. 28 in 1H24), TTV for Lottery Retailing declined 15.3% to $208.3 million. However, the launch of the Daily Winners loyalty program helped mitigate the impact, with an increase in revenue margin.
Software-as-a-Service (SaaS)
Jumbo’s digital lottery platform continues to gain traction, with TTV up 10.4%. Excluding the transition of St Helena Hospice to the UK Managed Services segment, TTV and revenue growth stood at 15.0% and 5.8%, respectively.
Managed Services (UK & Canada)
Managed Services saw TTV of $120.7 million, down 4.2%, with EBITDA at $2.7 million. The UK business remains steady, while Canada is experiencing a period of contract adjustments aimed at long-term growth.
Capital Management & Dividend
Jumbo continues to focus on returning value to shareholders, with an interim dividend of 24 cents per share at the top end of its payout ratio. The on-market share buyback program remains in place, with $4.65 million worth of shares purchased in 1H25.
FY25 Outlook Reaffirmed
Despite the subdued jackpot cycle in the first half, Jumbo is confident in its full-year outlook, driven by:
- Ongoing growth in digital lottery services.
- Continued success of the Daily Winners loyalty program.
- Expansion in international markets under new leadership.
With a strong cash position and a strategic focus on innovation, Jumbo remains well-placed to capitalise on future opportunities in the lottery and SaaS space.
