Total revenue for six months through to 30 June 2022 is forecast to reach AU$103.8m, up from $81.7m in underlying revenue for the 2021 financial year. This increase can be attributed to the improved jackpot cycle in Australia, with 43 Powerball/OzLotto jackpots compared to 38 in the previous year, and a 28% higher average jackpot value.
In February 2022, Jumbo benefited from a $120m Powerball jackpot, the first time it had exceeded $100m since September 2019. However, jackpot activity decreased in March and April 2022, with peak monthly jackpots of $20m, before increasing to $80m and $60m in May and June respectively.
Other notable figures from the preliminary results show an expected 35.5% year-on-year increase in total transaction value (TTV) to $660.1m. Underlying operating costs are forecasted to rise by 34.8% to $35.6m, but underlying EBITDA is still expected to increase by 13.7% to $54.0m and underlying net profit after tax by 15.8% to $31.6m.
Jumbo’s Chief Executive and Founder, Mike Veverka, expressed satisfaction with the strong growth achieved in FY22 and emphasized the company’s focus on its global growth strategy. The ongoing shift to digital and the new OzLotto game launched in May 2022 are expected to benefit lottery retailing. Furthermore, the integration of Stride and StarVale will help Jumbo build scale in its Managed Services and SaaS segments globally.
Looking ahead to FY23, Jumbo anticipates its performance to be influenced by factors such as the increase in The Lottery Corporation service fee to 3.5% of the subscription price of tickets purchased, up from 2.5% in FY22. Marketing costs are also expected to be in the range of 1.5% to 2.0% of lottery retailing TTV.
Excluding the impact of recent acquisitions, Jumbo targets a moderate increase of 20% to 22% in underlying operating costs, and an underlying EBITDA margin within a range of 48%-50%. The company acknowledges the significant role of jackpots in driving lottery retail ticket sales and revenue, but highlights the uncertainty surrounding the exact number and aggregate value of large jackpots in any given year.
Jumbo plans to publish its FY22 results in full on 26 August.
