Speaking at Jumbo’s annual general meeting, its chief executive Mike Veverka highlighted the company’s financial performance in the three months to 30 September. Despite a projected decline in revenue from AU$22.3m, there was a significant improvement in the underlying performance of Jumbo’s key lottery business. Like-for-like sales are expected to increase by between 26% and 64%.
However, Veverka noted a decrease of 38% in large jackpots compared to the same quarter last year. The peak jackpot also declined from a record $150m to $80m. On the other hand, sales from jackpot games under $15m are anticipated to climb by 36% year-on-year.
In addition to the financial aspects, Veverka emphasized the stronger engagement with customers experienced by Jumbo in Q1. This was attributed to enhanced data analytics, leading to improved customer engagement. Moreover, stay-at-home restrictions in Australia resulted in more customers engaging online, thereby allowing the business to connect with players on a deeper level.
Veverka expressed pride in the commitment and performance of the entire team given the challenging environment. He conveyed confidence in Jumbo’s resilient and financially strong business, enabling sustainable customer base growth through investments in existing operations and capitalizing on growth opportunities.
The AGM followed Tabcorp’s decision in September to sell its 11.6% stake in Jumbo Interactive for $97.8m. This move was justified by the formalized long-term extension of the reseller agreement until August 2030. Jumbo will now pay $15m to Tabcorp, along with a service fee of 4.65% of subscription revenue, for reselling lottery products in various Australian regions and international markets.
