FY21 Results: Jumbo Delivers Strong Revenue and Earnings Growth
TOOWONG, Qld. Australia (August 26, 2021) – Jumbo Interactive Limited (ASX:JIN) today announced results for the full year ended 30 June 2021, demonstrating the continued strength of the Lottery Retailing segment despite the impact of fewer and lower value large jackpots. The emerging Software-as-a-Service (SaaS) and Managed Services segments also made a significant contribution to the 37% increase in Group Total Transaction Value (TTV).
FY21 Group performance highlights:
- • Strong double-digit growth across key metrics:
o TTV up 37% to $487.0 million
o Revenue up 17% to $83.3 million
o Underlying EBITDA¹ up 13% to $48.9 million
- Underlying NPAT¹ up 7% to $28.3 million
- Underlying EPS1 up 7% to 45.4 cents per share
- Fully franked final dividend of 18.5 cents per share, taking the total FY21 dividend to 36.5 cents per share, up 3%
Jumbo Interactive CEO and Founder Mike Veverka said “FY21 reflects another record result for Jumbo. Importantly, while our Lottery Retailing segment is trading well without the benefit of jackpot growth, our SaaS and Managed Services segments have made a meaningful contribution to overall performance.”
“Our seamless transition to the new Tabcorp Agreement and strong performance in our Lottery Retailing segment is noteworthy. These continue to deliver steady growth at low jackpot levels, while boosting sales significantly at the larger jackpots.”
“We are delighted to have successfully transitioned our domestic SaaS clients on to the PBJ platform. This enables them to benefit from the power of our technology and lottery management expertise. In Managed Services, Gatherwell continues to go from strength-to-strength while we focus on extending the model into Australia.”
¹ ³ Adjusted for one-off costs of $1.65 million ($1.39 million tax adjusted) in FY21 (FY20:$0.4 million). Please see FY21 Investor Presentation for further detail.
There were 38 Powerball/OzLotto jackpots greater than $15 million in FY21, compared to 39 in FY20, with the average value of these jackpots down 21% compared to FY20. Despite the weaker jackpot environment, Lottery Retailing achieved underlying TTV growth of 15%² and revenue growth of 17%², with a strong 2H21 performance. Reported FY21 EBITDA was $30.4 million with an EBITDA/revenue margin of 40.5%, with the second half benefitting from the improved jackpot cycle (23 Powerball/OzLotto jackpots greater than $15 million, compared to 15 in the first half³
Jumbo licenses its PBJ platform as a SaaS solution to government and charity lottery operators globally. FY21 TTV grew to $104.8 million ($132.2 million based on Q4 annual run-rate) driven by the transition and scaling up of our Australian clients on the PBJ platform. Revenue increased to $32.1 million with revenue margins ranging from ~3% to 9.5%. Reported FY21 EBITDA was $22.0 million with an EBITDA/revenue margin of 68.5%³
Jumbo provides lottery management services to charities and worthwhile causes who do not
currently operate a lottery. FY21 performance principally reflects the strong performance of our UK subsidiary, Gatherwell. On a like-for-like and constant currency basis, Gatherwell delivered a strong performance with TTV and revenue up 40% and 42% respectively. Reported FY21 EBITDA more than doubled to £663k with an EBITDA/revenue margin of 36.0%.
FY21 Financial Summary
Capital management review
The Board completed its review of Jumbo’s broader capital management strategy, taking into
consideration several factors including the strong cash generation of the business, future capital
requirements, the strength of our balance sheet and the intention to provide an appropriate dividend for our shareholders. The Board resolved to maintain the existing dividend payout ratio at 85% of statutory Net Profit After Tax (NPAT). The Board will continue to monitor and evaluate the capital management strategy in the context of emerging opportunities for the Group.
1 Adjusted for one-off costs of $1.65 million ($1.39 million tax adjusted) in FY21 (FY20:$0.4 million). Please see FY21 Investor Presentation for further detail.
2 On a like-for-like basis, adjusting for the transfer of Jumbo’s Western Australia to Lotterywest’s PBJ platform (reported under the SaaS segment from 21 December 2020).
3 FY20 metrics not available following changes to the Group operating model and segment reporting.
The ongoing positive cash generation of the business and strength of our balance sheet has
enabled the Board to declare a final, fully franked dividend of 18.5 cents per share. The record date for the dividend is 3 September 2021 and it will be paid on 24 September 2021.
Jumbo Annual General Meeting
For the purposes of ASX Listing Rule 3.13.1, Jumbo advises that:
- The Annual General Meeting will be held on Thursday 28 October 2021 at 11.00am as a virtual meeting from its office in Brisbane; and
- In accordance with Rule 40.13(a) of the constitution of Jumbo Interactive Limited, the closing date for the receipt of director nominations is 15 September 2021, being at least 30 business days before the Annual General Meeting.
Summary and Outlook
Mr Veverka reaffirmed his confidence in the long-term growth prospects for digital lotteries globally and the actions being taken to ensure Jumbo is well positioned to benefit from this growth.
“FY21 has been a milestone year for Jumbo, as we implemented a new operating model, improved our governance structure and moved from one to three operating segments.
The global digital lottery industry shows no signs of slowing down and we will continue to invest in the business to ensure we are ready to capitalise on the medium to long term growth opportunities that lie ahead.
We now look forward to integrating Stride on our journey.”
About Jumbo Interactive
Jumbo is Australia’s leading dedicated digital lottery company, making lotteries easier by offering its proprietary lottery software platform and lottery management expertise to the government and charity lottery sectors in Australia and globally, and by retailing lottery tickets in Australia and the South Pacific via ozlotteries.com.
Jumbo was founded in Brisbane in 1995, listed on the ASX in 1999, and has ~150 employees creating engaging and entertaining lottery experiences for its global player base.
SOURCE: Jumbo Interactive.Tags: Jumbo Interactive, Financials