Jumbo hits the jackpot as big wins send profits up, up, up
Who says you can’t make millions out of the lottery?
Online lottery ticket seller Jumbo Interactive (ASX:JIN) says a run of large jackpots in December will boost its first half profit by 43 per cent.
It is forecasting profit of $5 million and revenue of 19.2 million, up 20 per cent on the prior period.
And the number of big wins? Up 20 per cent to 18 jackpots – that is pots worth more than $15 million.
Jumbos take a cut on ticket sales, so big jackpots tend to drive bigger ticket sales.
The app and website OzLotteries sells tickets to a range of sweepstakes including OzLotto, Powerball and TattsLotto.
It also specialises in smaller charity lotteries for organisations such as the Prince of Wales Hospital and Surf Life Saving.
“Three extra major jackpots at the end of December 2017 resonated well with our customer engagement efforts helping drive ticket sales beyond the original guidance,” chief Mike Veverka told investors.
“Two OzLotteries.com customers shared in the $40 million OzLotto prize on the 2nd January 2018.
“Performance is expected to exceed even the December 2015 half year when 24 major jackpots occurred compared to 18 in the recent half.”
Stockhead is seeking comment from Jumbo.
The company closed Monday up almost 6 per cent to $3.88, at the top end of a 52-week trading range spanning $1.55 to $3.96. That gives Jumbo a market value of $188 million.