Jumbo Interactive has declared an on-market share buy-back scheme of up to $25m after its FY22 performance displayed strong growth across its operations.
Publishing its FY22 annual report, Jumbo recorded revenues of $104.3m, up 25% year-over-year, aided by an ‘improved’ jackpot environment.
Lottery retailing delivered revenue growth of 21% and headline TTV growth of 26%, while its underlying EBITDA increased by 5% up to $30.1m, displaying the improved profitability of Jumbo’s lottery division.
The SaaS digital lottery division TTV increased by 60% YoY, helped by its ‘advantage through its dual role as a developer and client of its proprietary lottery software’.
The division recorded an underlying EBITDA uptick of 31% YoY to $28.9m, reflecting an EBTIDA/revenue margin of 67.8%.
Jumbo’s Managed Services platform was reflective of the UK-based Gatherwell, acquired in 2019. The division delivered a 31% and 24% increase in TTV and revenue respectively, whilst EBITDA grew by 3% to $0.7m.
Jumbo CEO and Founder Mike Veverka said: “We are pleased with the strong growth achieved in FY22 off the back of an improved jackpot cycle. FY22 was a pivotal year for Jumbo as we build the foundations to successfully execute our global growth strategy.
“Lottery Retailing is exceptionally well positioned to benefit from the ongoing shift to digital and the new OzLotto game launched in May 2022, while the integration of Stride and StarVale will build scale in our Managed Services and SaaS segments globally.”
Looking at the group as a whole, underlying operating costs increased by 33.2% up to $35.2m. This led to an improved underlying EBITDA figure of $55.1m, reflecting a 16% growth over FY21’s $48.9m.
Despite this, the underlying EBITDA margin dropped by 5.3 percentage points to 52.9%, impacted by ‘the step up in the service fee paid to The Lottery Corporation and previously flagged increased investment in the business to support strategic growth’.
Jumbo’s board has reacted to the positive performance in FY22 by passing a dividend of $0.205 per share, which will be paid out on September 2.
Veverka added: “The strength of our balance sheet, strong cash generation profile of our business, debt headroom and flexibility from our revised dividend policy enables us to continue to invest in the business, provides capacity for further M&A and organic growth, and delivers shareholder returns through dividends and a share buy-back.”