Australian internet lottery business Jumbo Interactive has published its full year results citing growth during a period of lower jackpot activity cycling from very strong results in FY2019. In the report, the firm noted total transaction value ahead by 9% to $71m, with underlying EBITDA of $43.2m, up by 8% year-on-year.
According to CEO and Founder Mike Veverka, Covid-19 restrictions helped drive players online which, in turn, facilitated an increase in ticket sales despite lower jackpots compared to the previous strong year.
He stated: “In addition, the software as a service business continues to grow with the signing of our fifth contract with the Classics for a Cause lottery and the completion of the onboarding process for the Mater Lottery.”
In his investor update, Chairman David K Barwick explained that Jumbo had managed to achieve an increase in ticket sales against a backdrop of difficult trading generally due to the pandemic.
He noted: “The 2019/20 year has not been an easy time for a lot of businesses due to the Covid-19 pandemic, however Jumbo Interactive Limited still achieved an increase in ticket sales by $28m bringing the total sales for the year to $349m.
“The online lottery industry has experienced further growth and this is expected to continue, especially as we broaden the charity lottery tickets we are now selling through our Powered by Jumbo software, which we feel will not only assist our profitability but also the deserving charities we are focusing on.
“This, together with the 10 year agreement recently announced with Tabcorp, will give both shareholders and Jumbo the confidence it requires to continue to develop online sales.”
Commenting specifically on Covid-19 and how the pandemic has affected operations, Barwick said: “With the experience of our major shareholder and CEO Mr Mike Veverka and his very skilled staff we have been able to continue to work both within the office and from the staffs‘ respective homes.
“This was a platform put in place many years ago in the event of such a situation where working from the office was not an option. It would be remiss of me at this point not to acknowledge the diversification and wealth of experience our staff have. This is supported not only by our CEO but also our key management personnel.
“Despite the challenges of the Covid-19 pandemic, we are proud and fortunate to still pay a full dividend and not rely on JobKeeper support. Whilst we continue to focus our growth within Australia, during the financial year we did acquire Gatherwell Limited which is located in the United Kingdom and operates as a lottery manager to raise funds for good charitable and public social causes.
“We also continue to look at other potential opportunities, however this does not take our focus off our Australian activities which has been the success of the company and its growth since its incorporation.”
