Jumbo Interactive shares lift as profit beats expectations
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More news: Shares in Jumbo Interactive lifted in morning trade as the digital lotteries reseller delivered a FY25 net profit after tax and before amortisation result 11% better than the market consensus estimate, according to Jarden analysts citing data collated by Visible Alpha.
At 11:37am AEST, shares in Jumbo had lifted 11.1% to $11.42, although the stock was still down 17.6% year-to-date.
The Jarden analysts said Jumbo had posted an “overall, clean, slightly better operational result” for FY25. This included an operational EBITDA result 4% better than consensus expectations and 2% ahead of Jarden’s expectation.
The revenue figure of $145.3 million was also ahead of the $142.8 million consensus and the $144.4 million expected by Jarden.
Jumbo Interactive sees full-year profit slide 7.3%
The news: Digital lotteries reseller Jumbo Interactive saw its full-year net profit fall 7.3% year on year to $40.2 million as the company pulled back from "unprecedented jackpot activity" a year earlier.
The numbers: Jumbo reported revenue of $145.3 million for FY25, down 8.8% year on year. Analysts had expected full-year revenue to shrink to $142.8 million, according to Visible Alpha data.
The company will pay final dividend of 30.5 cents per share, taking total dividends to 54.5 cents. This is above the consensus estimate of 49 cents per share.
For FY26 Jumbo is guiding an EBITDA margin range of 46% to 50%. It is also targeting a dividend payout ration of between 65% and 85% of statutory NPAT, consistent with the guidance range for FY25.
The context: The net profit result still amounted to the company's second highest profit on record as it pulled back from an "exceptional FY24, a year defined by unprecedented jackpot activity, including the record $200 million Powerball", according to Jumbo managing director, CEO and founder Mike Veverka.
Although there were 56 large jackpots in FY25, one more than compared to FY24, the total division 1 prize pool declined by 15.9% year on year. There were also no jackpots greater than $100 million in FY25, compared to three in FY24.
What they said: "This performance continues a near decade-long record of year-on-year growth, with FY15 the last time we did not exceed the prior year's result," Veverka said.
He added that Jumbo is focused on expanding "outside of the Australian Lottobloc games such as Powerball and Oz Lotto". This includes its international businesses, the provision of its digital lottery platform to government and charity lottery operators, and proprietary games and programs.
The source: ASX
