Jumbo Interactive declares 9% revenue increase in H1 FY21

Jumbo Interactive Limited has announced its H1 FY2021 financial results for the period ended December 31 2020.
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Jumbo Interactive Limited has announced its H1 FY2021 financial results for the period ended December 31 2020.

The firm declared group revenue of A$40.9m in H1 FY21, up 9% from H1 FY20’s A$37.5m. EBITDA also increased by 3.7% to A$24.1m from the previous year’s A$23.2m.

Executive Director and CEO Mike Veverka said: “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”.

“For the first time, we are reporting our results in three segments, reflecting the evolving
strength and diversity of Jumbo, as we continue to leverage our superior lottery management capabilities and technology to reshape our business, making lotteries easier for our partners and customers, and underpinning our continued growth, both domestically and offshore.”

In Lotteries Retailing, the Australian lottery market only experienced 15 large jackpots compared with 23 in the previous corresponding period, a decline of 35%. Despite this notable headwind, Jumbo achieved a 25% increase in group TTV from A$185.3m in H1 FY20 to A$232.7m in H1 FY21.

As previously mentioned, the operator saw a 9% increase in group revenue in H1 FY21, which it attributes to its evolving Managed Services business and in SaaS where it entered into a new partnership with its first government customer, LotteryWest.

Meanwhile, in Managed Services, Gatherwell made a material and pleasing contribution to its result. This past week, it also announced two new domestic charity partners for its Managed Services segment.

Jumbo stated its underlying EBITDA only grew by 3.7% due to several one-off factors, including most notably the dampening impact on Lotteries Retailing for this half of the service fee it pays under the new Tabcorp agreement, in exchange for a 10-year licence to resell its product.

In response to the result and continued positive cash generation, the board has declared a fully franked dividend of 18 cents per share. The record date for the dividend is March 5 2021 and it will be paid on March 19 2021.