Jumbo Interactive announces 29% revenue rise in H1 FY22

Jumbo Interactive
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Jumbo Interactive Limited attributed large jackpots and ‘exceptional’ retail performance to its strong position in H1 2022, with the firm posting a 29% revenue hike.

Publishing its H1 2022 financial results for the period ending December 31, the Australian firm saw its revenue rise to $52.8m, a 29% increase from $40.9m in H1 2021. EBITDA also increased by 18% to $28.3m from the previous year’s $24.1m.

Mike Veverka, CEO and Founder of Jumbo Interactive, commented: “We are very pleased with the growth that we have achieved this half, across all our operating segments, and the positive momentum across the business.

“Lottery Retailing continues to perform exceptionally well, underpinned by the improved jackpot cycle and our focus on player engagement and retention. Our SaaS and Managed Services segments continue to demonstrate good organic growth, with all our Australian SaaS clients contributing on a full run-rate basis.”

Jumbo announced the conditional acquisitions of Stride (August 2021) and StarVale (January 2022) but neither has been included in H1 2022 as they are subject to regulatory approval.

“We are successfully executing on our strategy and planning is underway to ensure we efficiently and effectively integrate the Stride and StarVale acquisitions post completion,” added Veverka.

“The global lottery industry is in the midst of a digital change and our Powered By Jumbo software platform will be key to supporting lotteries through this change. Our balance sheet remains strong and when combined with our new debt facility, provides additional headroom for further strategic growth.”

In Lottery Retailing, the Australian lottery market experienced 23 large jackpots, a sizeable increase from 15 in H1 2021. Jumbo also managed a 41% increase in group TVV from $232.7m in H1 2021, to $327.9m in H1 2022.

Jumbo’s underlying EBITDA increased 18% but attributed the impact of its underlying margin to an increase in the Tabcorp service fee, higher marketing expenses in Lottery Retailing and higher employee expenses to support growth.

In response to the financial result and ongoing positive cash generation of the business, the board has declared an interim, fully franked dividend of 22 cents per share.

The record date for the dividend is 4 March 2022 and it will be paid on 18 March 2022.