Australia’s digital lottery company, Jumbo Interactive, has published its financial results for the fiscal year 2021 (FY2021), revealing it has strong double-digit growth in key performance metrics as it continues to implement its expansion strategy.
For the year ending June 30, Jumbo’s total revenue was A$83.3m, up 17% from the previous year, while the company’s total transaction value (TTV) rose 36.1% from A$356.41m up to A$487m.
This comes despite “the impact of fewer and lower value large jackpots” which would usually lead to poor customer acquisition and more difficult conditions to create organic growth.
Despite the weaker jackpot environment, lottery retailing achieved underlying TTV growth of 15% and revenue growth of 17%, with a strong H2 2021 performance.
The firm’s adjusted EBITDA for the period was up 13% to $48.9m. However, due to the closing gap between revenue and EBITDA growth, the total underlying EBITDA margin has decreased by two percentage points from 60.7% to 58.7%.
CEO and Founder, Mike Veverka, said: “FY21 reflects another record result for Jumbo. Importantly, while our Lottery Retailing segment is trading well without the benefit of jackpot growth, our SaaS and Managed Services segments have made a meaningful contribution to overall performance.
“Our seamless transition to the new Tabcorp Agreement and strong performance in our Lottery Retailing segment is noteworthy. These continue to deliver steady growth at low jackpot levels, while boosting sales significantly at the larger jackpots.
“We are delighted to have successfully transitioned our domestic SaaS clients on to the PBJ platform. This enables them to benefit from the power of our technology and lottery management expertise. In Managed Services, Gatherwell continues to go from strength-to-strength while we focus on extending the model into Australia.”
The published results come just a day after Jumbo signed an agreement that will see them acquire the Canadian lottery management provider, Stride Management, as part of its strategy for international expansion.
Veverka added: “FY21 has been a milestone year for Jumbo, as we implemented a new operating model, improved our governance structure and moved from one to three operating segments.
“The global digital lottery industry shows no signs of slowing down and we will continue to invest in the business to ensure we are ready to capitalise on the medium to long term growth opportunities that lie ahead. We now look forward to integrating Stride on our journey.”
