Jumbo Interactive cuts payouts as half-year profit falls
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The news: Lottery operator Jumbo Interactive cut payouts as it posted an 11.4% fall in first-half net profit to $17.86 million, amid what the company said was a "relatively subdued" large jackpot environment.
Jumbo declared an interim dividend of 24 cents per share, 11% lower than last year's 27 cent per share payout.
The numbers: Analysts polled by Visible Alpha had expected Jumbo would cut its interim dividend to 23 per share and post a 9.5% fall in profit after tax to $18.3 million.
The company's total transaction value fell 6.4% year on year to $453.4 million, as revenue tumbled 10.5% to $66.1 million.
The context: Jumbo said the subdued large jackpot environment prompted changes to marketing techniques and cost base management.
During the half, there were 24 large jackpots — of $15 million or more — compared to 28 in the prior corresponding period. The aggregate division one prize value of $810 million was down from $1 billion a year earlier.
The company reaffirmed its full-year outlook, anticipating a "return to the historical number of large jackpots" in Australia.
The source: ASX announcement
