Australia lottery retailer Jumbo Interactive has predicted a 27.1% year-on-year revenue growth for the fiscal year 2022. The company also foresees its total revenue for the first half of the year ending on June 30 to go to AUS$103.8 million ($69.8 million). The number signals a 32.75% growth from $81.7 million ($55.2 million) in 2021.
EBITDA Expected to Go Up by 13.7%
Jumbo Interactive also expects its earnings before interest, tax, depreciation, and amortization (EBITDA) to go 13.7% higher. While the operating costs are forecast to reach close to 35% reaching $35.6 million ($26 million), the underlying EBITDA is likely to reach $54 million ($36.4 million). The preliminary results also spoke about an underlying net profit after tax expected to go up 15.8%, reaching $31.6 million ($21.3 million).
The company explains the reassuring numbers through a larger number of Powerball/OzLotto jackpots recorded in 2022 compared to 2021. Jumbo improved its jackpot cycle with 43 jackpots in 2022, compared to just 38 in 2021. The average value of a jackpot also went up by 28%. In February, Jumbo’s Powerball jackpot reached $120 million ($81 million). This was also the first time when the jackpot went over the $100 million ($67.5 million) mark since September 2019. In March and April, the monthly jackpots peaked at $20 million ($13.5 million), prior to exploding to $80 million ($54 million) in May and $60 million ($40.5 million) in June.
2022, a Pivotal Year So Far
Jumbo Interactive’s chief executive and founder Mike Veverka referred to the first half of 2022 as a “pivotal year” for the company, used for building the foundation needed to execute its global growth strategy. Veverka also expressed the company’s excitement regarding the “strong growth” recorded in FY22 “off the back of an improved jackpot cycle”.
The continuous shift to the online world, the fresh OzLotto game launched in May, and the acquisitions of StarVale and Strode are expected to help the company keep scaling its Managed Services and Software as a Service. Jumbo will publish its full results for the fiscal year 2022 on August 26. Last October, Jumbo appointed Nigel Atkinson as general manager for the UK. He was endorsed by chief commercial officer Richard Bateso. Jumbo Interactive continues to show its support for not-for-profit organizations via a series of fundraising efforts.