Jumbo Interactive (JIN) H2 2024 earnings summary

Executive summary

• Achieved record financial performance in FY 2024, with strong growth across all key metrics and segments, driven by robust lottery retailing, SaaS momentum, and disciplined capital management; surpassed AUD 1 billion in TTV for the first time.

• Over 1 million active players engaged, supported by product and pricing changes, and positive digital penetration trends.

• Continued expansion through partnership extensions, new client wins, and successful integration of acquisitions, while maintaining a disciplined approach to M&A.

• Maintained a measured cost approach, balancing efficiency with reinvestment for growth.

• Enhanced capital flexibility with a new debt facility and increased dividend payout.

Financial highlights

• Group TTV up 24% to $1,054m and revenue up 34% to $159.3m year-over-year; underlying EBITDA up 30% to $76.6m and underlying NPATA up 31% to $46.4m.

• Free cash flow rose 14% to $54.1m, with cash conversion at 125%.

• Dividend increased by 27% to 54.5 cps, with a payout ratio of 79.2% of statutory NPAT.

• Underlying EBITDA margin: 48.1% group, 52.2% Australia, 26.4% managed services.

• Net assets increased to $115.2m, and available funds at $60.9m.

Outlook and guidance

• Targeting group underlying EBITDA margin of 46%-48% for FY 2025, with Australia at 51%-53% and managed services at 21%-23%.

• Marketing costs expected at 1.5%-2% of TTV; SaaS segment anticipates low teens TTV growth, mainly from existing clients.

• Dividend policy remains unchanged, with plans to accelerate the on-market share buyback.

• Assumes a return to historical jackpot levels and flat TLC service fee.