Appendix 4E - Preliminary Final Report

Aug 31, 2007

JUMBO CORPORATION LIMITED ABN 66 009 189 128

Reporting period: Financial year ended 30 June 2007 Previous Corresponding period: Financial year ended 30 June 2006

RESULTS FOR ANNOUNCEMENT TO THE MARKET  

 

2007

$

2006

$

Change

$

Change

$

  Revenue   17,925,140   16,573,717   1,351,423  

8%

Profit/(Loss) after tax attributable to members   (739,790)   786,973   (1,526,763)   (194%)

DIVIDENDS No dividends have been paid or provided for on ordinary shares during the year ended 30 June 2007 - (30 June 2006 - nil). EXPLANATION OF RESULTS The results for the full year ending 30 June 2007 include a loss of $739,790 from revenues of $18 million. EBITDA (Earnings Before Interest, Tax, Depreciation, Amortisation and impairment losses) was $38,114. The loss is due mainly to impairment of investments, network upgrade and development costs. Impairment of Investments 1. Impairment of Global Approach Limited (GLO) Investment. As previously announced, GLO was adversely affected by changes in US legislation relating to online gaming. Jumbo recently sold its entire holding in GLO raising $1.09 million (less brokerage costs) in additional working capital but resulting in a one-time loss. 2. Impairment of Proprietary Online Games. As announced between September 2006 and December 2006, Jumbo developed and launched a range of proprietary online lottery games that included scratchprizes.com and pinballkeno.com. A decision was made to close these games due to low sales resulting in a one-time loss. Network Upgrade and Development Costs Improvements and new additions were made throughout the year to both Internet (Ozlotteries.com) and non-Internet (Pacific Island Network) sales channels to build a platform for future growth. These improvements and new additions were required to build a system capable of sustaining higher sales levels and to take advantage of new marketing initiatives. Manaccom Acquisition Throughout the year, management have been active in searching for a suitable acquisition in the Information Technology industry. This effort culminated in the signing of a heads of agreement to acquire Manaccom on 25 June 2007. Furthermore, as announced on 23 August 2007, shareholders voted in favour of issuing 80 million shares as part consideration for the acquisition. Manaccom is a successful software publisher and distributor of popular titles such as Trend Micro Internet Security. It has contracts to supply major retail chains including Harvey Norman, Dick Smith, JB Hi-Fi and Officeworks. At a recent general meeting of shareholders on 23 August 2007, shareholders approved the issue of 80 million shares as part of the acquisition consideration. The information provided in this report contains all the information required by ASX Listing Rule 4.3A. Note: The accounts are in the process of being audited or subject to review.


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