Thursday August 22,2013 : AUSSIE INTERACTIVE LOTTERY FIRM TAKES A HIT TO PROFITS
Costs of expansion knock profits at Jumbo Interactive
The Brisbane, Australia-based international lottery provider Jumbo Interactive's FY results for 2013 reveal that profits fell 55 percent, mainly due to the company's aggressive expansion strategy into European markets. The firm nevertheless produced a performance ahead of market guidance, reporting:
* TTV at A$109 million (FY-2012: A$100 million
* Revenue at A$25.2 million (FY-2012: A$24.1 million)
* Reported EBITDA of A$6.7 million (FY-2012: A$10.5 million)
* NPAT of A$3 million (FY-2012: A$6.7 million)
* Assets of A$20.5 million (FY-2012: A$18.1 million)
* Customer database up at 1.57 million (2012- 1.38 million)
During 2013 Jumbo continued to pursue international expansion, announcing:
* July 2013 awarded licences in all German States
* June 2013. Agreements signed with major retail chains in USA via Jumbo's joint venture
* March 2013. Expansion into Germany
* November 2012. Expansion into Latin America through deal in Mexico
* November 2012. Move into USA through Joint Venture
* September 2012. Five new lottery products released at the World Lottery Summit in Montréal.
Mike Veverka, CEO and founder of Jumbo Interactive reported:
"2013 was the year when Jumbo transformed from a domestic business into an international operation with significant activities across three continents.
"In 2014, Jumbo will begin earning revenue in Germany, USA and Mexico as well as Australia and we are making the right progress in building the required infrastructure to support these businesses for the benefit of the company and its shareholders over the long term", he said.
"With over $16.9 million in net cash and a strong balance sheet with net assets of $20.5 million, Jumbo is able to comfortably steer these projects into profitability."
Veverka noted that Jumbo continued to support the Tatts Group and the Australian lottery industry through investments in online marketing and product innovation as more and more lottery players choose to use the internet to play Australian lotteries.
He added that the increasing influence of social networking was apparent in both interaction and customer acquisition. "Social media, as well as the increased usage of smartphones and tablet computers, is beginning to make a real impact in customer interaction with Australian lotteries", said Veverka.