Jumbo Interactive (JIN) H1 2025 earnings summary

Executive summary

• 1H25 performance was impacted by subdued jackpot activity, leading to lower group TTV, revenue, and earnings, but strategic initiatives like the Daily Winners loyalty program and disciplined cost management supported engagement and retention.

• SaaS segment delivered strong TTV growth (up to 20%) with new partnerships, high customer advocacy, and revised license fee structures, though external revenue growth was modest.

• Managed Services in the UK and Canada performed in line with expectations, providing a strategic foothold despite lower earnings and a decline in Canada.

• Accelerated on-market share buy-back and interim fully-franked dividend of 24.0 cents per share declared, reflecting strong capital management.

• Group maintained strong liquidity with over $50 million in available funds and a robust balance sheet.

Financial highlights

• Group TTV declined 6.4% to $453.4 million and revenue fell 10.5% to $66.1 million year-over-year, mainly due to fewer large jackpots.

• Underlying EBITDA dropped 12.9% to $30.6 million; NPAT-A/NPATA fell 10.8% to $18.6 million; group cash flow dropped 64% due to timing of trade payables.

• Interim fully-franked dividend of 24.0 cents per share declared, down 11.1% year-over-year; payout ratio at 84.2% of statutory NPAT.

• Share buyback totaled $4.6 million in 1H25, with cumulative spend reaching $7.9 million.

• Available funds at period end were $52.7 million, with $50 million in undrawn debt facilities.

Outlook and guidance

• FY25 outlook reaffirmed, with group underlying EBITDA margin guidance of 46%-48% and Australia at 51%-53%.

• Early second half trading shows improved jackpot environment, with TTV up 45% sequentially from the first half.

• Managed Services expected to see flat-to-low single digit revenue growth, with UK growth offset by a decline in Canada.

• Dividend payout ratio targeted at 65%-85% of statutory NPAT.

• Focus shifting to B2C M&A opportunities for higher growth, while maintaining discipline on acquisition economics.