Jumbo Interactive (JIN) H2 2024 earnings summary

Executive summary

• Achieved record FY24 growth with over $1.054 billion in TTV, 34% revenue growth, and 30% underlying EBITDA increase, driven by strong lottery retailing, SaaS momentum, and disciplined capital management.

• Surpassed 1 million active players in Lottery Retailing, supported by product and pricing changes, digital penetration, and player acquisition from large jackpots.

• Continued expansion through new partnerships, contract extensions, and successful integration of acquisitions, including Gatherwell, Stride, and StarVale.

• Maintained disciplined M&A approach, walking away from a U.K. acquisition after unfavorable renegotiation, while actively assessing further opportunities.

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

Financial highlights

• TTV up 24% to $1.054 billion and revenue up 34% to $159.3 million year-over-year; underlying EBITDA up 30% to $76.6 million and NPATA up 31% to $46.4 million.

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

• Dividend increased by 27% to 54.5 cents per share, with a payout ratio of 79.2%.

• Underlying EBITDA margin at 48.1% (Australia: 52.2%, Managed Services: 26.4%).

• Net assets increased to $115.2 million, and available funds rose to $60.9 million.

Outlook and guidance

• FY25 group underlying EBITDA margin expected at 46%-48%; Australia segment at 51%-53%; Managed Services at 21%-23%.

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

• Dividend payout ratio target maintained at 65%-85% of statutory NPAT; on-market share buy-back to continue.