Lottery retailer Jumbo Interactive has announced a slow start to the second quarter of its 2024 financial year after a strong first quarter. While the company did not release a full set of financial figures, it did provide a trading update as part of its 2023 AGM, indicating a challenging beginning to the second quarter.
The company highlighted the success of its retail business during the first quarter, attributing it to a series of large jackpots totaling AU$410.0m. However, the start of the second quarter did not fare as well, with October’s aggregate value reaching only $185.0m, compared to a formidable $390.0m in the same period the year before. As a result, the lottery retail total transaction value (TTV) decreased by 11.0% to $153.7m.
Despite the decline in TTV, revenue for the first four months was up 3% to $35.0m, driven by higher margins resulting from pricing changes implemented in May 2023.
Jumbo’s software-as-a-service (SaaS) and managed services divisions reported growth during the first quarter. SaaS external revenue increased by 20.0% to $2.4m, with managed services revenue climbing 123.1% to $5.8m. This positive trend continued with TTV for SaaS and managed services increasing by 20.0% and 128.7% respectively.
As for the company’s outlook for the full year, Jumbo remains confident, targeting a group EBITDA margin of between 48.0% to 50.0%, while also aiming to grow revenue faster than operating expenses.
The update coincides with the news of Jumbo seeking a new CFO following the resignation of David Todd due to unforeseen personal health reasons. Jatin Khosla will take on the role of interim CFO while the company conducts a review of its global finance and support services.
CEO Mike Veverka thanked the company’s staff for their hard work and adaptability, particularly in light of the changing work environment and the shift to a hybrid work model. He also expressed gratitude to David Todd for his dedication to the team, wishing him the best for the future.