Half Year 2025 Jumbo Interactive Ltd Earnings Call Transcript
Key Points
- Jumbo Interactive Ltd (ASX:JIN) successfully launched the Daily Winners Premium tier loyalty program, enhancing player engagement during a subdued jackpot period.
- The SaaS segment showed positive momentum with strong charity TTV growth and new partnerships, indicating robust customer advocacy.
- The balance sheet remains strong, providing flexibility for future growth, and the company declared an interim fully franked $0.24 per share dividend.
- Digital penetration increased to 40.4%, showing potential for further growth in the online lottery market.
- The company has a strategic focus on B2C opportunities, which are expected to deliver higher growth compared to traditional B2B targets.
- Group TTV and revenue were down 6% and 11%, respectively, due to a subdued jackpot environment.
- Underlying EBITDA and NPATA decreased by 13% and 11%, respectively, reflecting the impact of lower revenue in Lottery Retailing.
- Free cash flow was down 64%, impacted by trade payable timing differences, although cash conversion would have been around 100% after adjustments.
- The cost per lead increased significantly, reflecting increased maturity in the online lottery market and heightened competition.
- Canadian revenue declined 19% due to the transition or discontinuation of several lottery contracts, impacting the Managed Services segment.
Good morning, everyone, and welcome. Let me begin by acknowledging the traditional owners on the land in which we meet and pay our respects to all elders past and present. Today, I'm joined by our CFO, Jatin Khosla, to present our financial results for the first half of '25.
First up is a review of the first half. In Lottery Retailing, we successfully launched our Daily Winners Premium tier loyalty program, which is having a positive effect on our core Powerball and OzLotto games and helped with player engagement in a subdued jackpot period.
Our SaaS segment continued the positive momentum with customer advocacy at an all-time high, strong charity TTV growth, new partnerships and extensions to the Endeavour and DevConnect agreements. We've managed the cost base effectively given the unfavorable run of jackpots and are well positioned to capitalize during periods of stronger jackpot activity.
Overseas, progress in the UK and Canada under the leadership of Tam and Marina remains on track.
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