Administrator Appointed to Software Subsidiary
Jan 31, 2011
ASX RELEASE Monday, 31 January 2011
ADMINISTRATOR APPOINTED TO SOFTWARE SUBSIDIARY
Directors will work closely with the administrator and provide assistance as required in determining the future direction of the software subsidiary. The division incurred a trading loss before tax of $3.8 million in FY2010 before extraordinary expenses, including write-downs, which led to a total group loss after tax of $7.3 million as previously announced.
The Jumbo Interactive group has made a strategic decision to cease providing further funding to its Manaccom software subsidiary, and this has prompted the appointment. This was due to adverse market conditions for over-the-counter software. The group intends to put forward a proposal for a deed of company arrangement in order to provide a substantial return to all creditors.
Jumbo Internet Lotteries Continues Strong Growth
Meanwhile, Jumbo is pleased to report that the group main operating division, Jumbo Internet Lotteries, continued its strong growth in the first half of FY2011 with a particularly successful New Years Eve Superdraw that brought in new customers and sales. This division contributed $4.7 million in net profit before tax from revenue of $66 million in FY 2010 and has continued its growth in FY 2011.
The entire group remains on target to achieve a half-year net profit after tax in the order of $2.5 million to $2.7 million for the period to 31 December 2010, as previously forecast in November 2010.
The Company expects to release its 2010-2011 half-year results in mid-February 2011.
About Jumbo Interactive
In 2000, the Company sold its first lottery ticket on the Internet. In 2005 it made the leap into national lotteries with the acquisition of TMS Global Services Pty Ltd and subsequently developed the successful OzLotteries.com website that is the backbone of the business today.
Thousands of Australians each day play their lucky numbers in their favourite lottery games using this safe, secure and innovative website based on technology that has been in constant development for over 10 years.
Just as travel, accommodation and car sales have made successful transitions to the Internet, lotteries are also going through an online transition and customers are finding the benefits offered by www.ozlotteries.com to be a very convenient way to purchase their regular lottery tickets.
Lottery sales have grown from strength to strength rising from $25 million in 2008 to $42 million in 2009 and $66 million in 2010. This is driven by continuous website improvements in addition to various marketing initiatives that have opened up new Internet markets for lotteries.
OzLotteries.com plays an important role in the Australian lottery industry with over $15 million in additional State Government revenue raised from sales in 2010.
As well as continuing its growth in Australia, the Company is actively pursuing opportunities overseas, in particular the AUD$60 billion US market and the AUD$110 billion UK and European markets.
For further information:
Mike Veverka CEO and Executive Director
Ph: 07 3831 3705