Jumbo Interactive Ltd continues to gain popularity and sales in online lotteries

() is expected to achieve a growth of about 20 to 25% in total transaction value (TTV) in FY2019 compared to FY2018, supported by growth in traditional draw lotteries and emerging charity lotteries.

Jumbo has opened up new lottery markets with its innovative online lottery software platform and internet marketing initiatives that have brought lotteries to younger demographics via the internet.

From a modest run of Jackpots in FY2018 (32 large jackpots compared to 31 the previous year), Jumbo has significantly increased ticket sales and revenue by 26% and 23% respectively.

This translated into a 55% increase in net profit after tax (continuing operations) due to the scalable nature of the business and a tight rein on costs.

Key FY2018 results

It is worth noting that the company has succeeded in targeting a younger and more mobile demographic with mobile now accounting for 75% of all customer interactions.

Jumbo’s earnings before interest and tax (EBIT) margin target of 44% to 46% for FY2019 is driven by operating leverage with continued improvement in efficiencies and focus on cost management.

With net assets of about $47 million and available cash of about $40 million as at 30 June 2018, Jumbo is well funded for continued growth in 2018 and beyond.

22% online by 2020

Following landmark agreements with Tatts signed in May 2017 and the completion of the merger between Tatts and Tabcorp Holdings () in December 2017, Jumbo is now strongly aligned with the most significant player in the Australian lottery and gaming industry.

Tabcorp’s significant shareholding in Jumbo provides the stability for Jumbo to further develop the online lottery market.

Importantly, the continuing rise in popularity of online lottery tickets underpins the vision to grow internet penetration up from 18% in 2018 to 22% by 2020.

New software platform

During FY2017, a three-year project to rewrite the Jumbo Lottery Software Platform went live opening the door for improved performance.

The impact was felt immediately on ticket sales as old roadblocks were quickly removed

Customer engagement is well up with 438,000 active customers in FY2018 compared to 354,000 the previous year.

The average spend per customer per year reached $371 in FY2018 and the number of new accounts for the year reached 215,000 compared to 161,000 the previous year.

Upcoming ASX Small and Mid-Cap Conference

Jumbo Interactive will be presenting at the inaugural ASX Small and Mid-Cap Conference being held in Sydney on Thursday, September 6.

To attend the conference, please register here.

Source link Internet Marketing Tips

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