Jumbo, a finance company, announced a series of acquisition deals during the 12 months to 30 June. They completed the $11.7m purchase of Canada-based lottery management provider Stride Management in June. However, the approval process for the acquisition of UK external lottery manager and digital payments business StarVale Group has been delayed, and it is expected to be completed next year. Despite the delays, Jumbo’s founder and CEO, Mike Veverka, stated that the company will continue to pursue further opportunities in 2023 and beyond, thanks to their strong financial position and flexible dividend policy.
Jumbo aims to increase its active player base through these acquisitions, which will add approximately 1.6 million players to their platforms. They believe that having more active players will contribute to their growth and minimize contract risks. Jumbo sees potential for growth in their priority markets of Australia, the UK, and Canada.
In their 2022 financial year, Jumbo experienced a 25.1% increase in revenue compared to the previous year, reaching AUS$104.3m. Retail lottery revenue increased by 26.7% to $91.1m, driven by numerous jackpots in Australia. Their Software as a Service (SaaS) revenue grew by 31.9% due to an increase in active players, while managed services revenue jumped by 46.6%. The company’s total transaction value rose by 35.5% to $659.9m.
Operating expenses increased by 30.8% to $36.7m, but pre-tax profit still rose by 15.8% year-on-year to $45.2m. After tax payments, the net profit for the year reached $31.2m, a 15.6% increase from the previous year. Additionally, Jumbo reported a 14.3% rise in earnings before interest, tax, depreciation, and amortization (EBITDA) to $54.1m.
Jumbo’s CEO expressed satisfaction with the growth achieved in the 2022 financial year and emphasized their focus on executing their global growth strategy. They believe that lottery retailing is well-positioned to benefit from the shift to digital, and the integration of Stride and StarVale will enhance their managed services and SaaS segments worldwide.
