FY 2011 Results
Aug 23, 2011
ASX RELEASE – Tuesday, 23 August 2011
• 6th consecutive Record Revenue up 15% to $76 million
• Record Net Profit After Tax $4.8 million
• 0.5c Final Dividend declared bringing full year dividend to 1.0c
• Strong balance sheet with Net Assets $10 million
Leading interactive lottery business, Jumbo Interactive (ASX: JIN), today announced its 6th consecutive record Revenue of $76 million, record Net Profit After Tax of $4.8 million and also declared a fully franked 0.5c final dividend bringing total dividends for the year to 1.0c.
The result was due to the continuing growth of the Internet lottery market in Australia and overseas. Jumbo’s key asset, www.ozlotteries.com benefitted from significant in-house technological development with the release of the smartphone service m.ozlotteries.com and the customer loyalty program www.lottopoints.com. Both were key to opening new markets and adding value to OzLotteries.com customers that have grown to record numbers.
“Our record result, strong balance sheet and key lottery assets puts the Company in a good position to grow international markets and to evolve in the Australian market in the year ahead”, said Mr Mike Veverka, CEO and Founder of Jumbo Interactive Limited.
The Australian market for Internet lotteries has grown to approximately 6% of the overall lottery market since the launch of both OzLotteries.com and Tatts.com over 7 years ago. Similar markets overseas such as the UK have reached 15% giving a guide to the growth ahead.
During the past 7 years, OzLotteries.com has adapted well to the emerging market with both OzLotteries.com and Tatts.com developing markets independently. Directors caution however that the market is set to evolve again with the expected introduction of a NSW version of Tatts.com with a potentially adverse impact to results in the year ahead. Management will continue to guide OzLotteries.com with a long-term view with respect to other operators and stakeholders in the lottery industry.
“I wish to thank the board and our staff for their valuable contribution in achieving this record result and I look forward to the year ahead”, said Mr Veverka.
Interactive Lottery Assets
The cornerstone to Jumbo’s success is the lottery technology that has been in constant development for over 10 years. In the past 12 months, this technology was given a boost with the release of the smartphone version m.ozlotteries.com that opened a new market of mobile customers. The customer loyalty program www.lottopoints.com was also enhanced and is a key asset to retaining customer accounts. This technology is not only benefiting the Australian market, but is key to expanding international markets. Throughout the year, significant effort was directed towards expanding Australian lotteries into international markets as well as working with new lotteries in North America and Europe.
The technology was exhibited on the world stage at the World Lottery Association, European Lottery Congress, National Association of State and Provincial Lotteries (USA) and other key lottery associations (www.jumbolotteries.com). Further exhibitions are planned in the year ahead, particularly in the USA. The customer database of Australian and overseas customers has also become a key asset to the Company. A significant number of customers evenly split between male and female and over 18 years old have accounts on OzLotteries.com and have developed loyalty to the brand through years of quality service.
About Jumbo Interactive
In 2000, the Company sold its first lottery ticket on the Internet and since then has developed www.ozlotteries.com into a popular place for lotteries to be played.
Jumbo has proven its ability to open up new lottery markets with its innovative technology and Internet marketing initiatives that have brought lotteries to new demographics via the Internet.
International markets are key targets for the Company, in particular the $60 billion North American and $110 billion European lottery markets. The US market has not yet moved to the Internet due to federal regulations that are currently under review.
OzLotteries.com plays an important role in the Australian lottery industry with over $17 million in additional State Government revenue raised from sales in 2011 and $15 million in 2010.
For further information:
CEO and Executive Director
Ph: 07 3831 3705