FY05 Preliminary Final Results - Full Year Record Profit

Sep 12, 2005

ASX RELEASE – Monday 12th September 2005

Jumbo Corporation Limited (ASX:JUM), a leader in online lotteries and ecommerce services, today announced a profit of $630,371 and an EBITDA of $720,083. The FY05 result represents significant improvement on last years figures.

This result includes 1 month of trading from TMS Global Services Pty Ltd. which was fully acquired in May 2005. On a 12 month trading basis, a  combined Jumbo and TMS business would have resulted in a FY05 profit of $1.5 million and a FY05 EBITDA of $1.8 million.
 
“Our 3rd straight record profit and the successful acquisition of TMS are the highlights of the most successful year in Jumbo’s history”, said Mr Mike Veverka, CEO. “The addition of TMS improves our profitability and brings many new opportunities due to its unique licenses to sell Australian lotteries online.”
 
“The company’s financial position is strong with cash levels of $5.5 million, total assets of $11.5 million and net assets of $3.9 million”, said Mr Veverka. “the strong financial position gives Jumbo the ability to take advantage of its early mover advantage in the online lottery industry which is expected to undergo substantial growth over the next 5 years.”
 

12 Month Trading Basis

During FY05, TMS traded 11 months as a separate private company and 1 month as a fully owned subsidiary of Jumbo Corp. The combined Jumbo and TMS business on a 12 month trading basis would have resulted in a FY05 EBITDA of $1.8 million and FY05 profit of $1.5 million.
 

Financial Performance

TMS was acquired towards the end of FY05 so only 1 month trading results were incorporated in the final results. The following table summarizes the results as reported.

 

  FY05 FY04 % Change
Revenue $7.2 million $7.7 million 6.5% decrease
EBITDA $720K $370K 94% increase
NPAT $630K $290K 117% increase
 
The small decrease in revenue is attributable to an intentional higher average sales price resulting in a higher profit margin but a lower revenue.
 

Financial Position

 
The following table highlights the strengthening financial position over the last 3 years.

 

 

FY05

FY04

FY03
Cash $5.4 million $1.9 million $0.9 million
Total Assets $11.5 million $3.4 million $1.7 million
Total Liabilities $7.6 million $2.2 million $1.1 million
Net Assets $3.9 million $1.2 million $0.6 million
 

ABOUT TMS

TMS Global Services Pty Ltd is a wholesaler and online retailer of Australian lottery products through agreements with Tattersall’s (Victoria) and the NSW Lotteries Corporation. The company retails popular lotteries such as Saturday Lotto, Powerball and OzLotto via its website at www.ozlotteries.com. As well as the online lottery business TMS supports a private network of lottery outlets in various Pacific Islands including Fiji, Cook Islands and Norfolk Island. This network was established in the 1990’s and allows traditional retailers to sell Australian lottery products.  

ABOUT JUMBO

Jumbo Corporation Limited is a successful online retailer and e-commerce provider. Profitable for the last 3 years, the company retails a range of products such as pharmacy goods, software and luxury items such as fragrances and cosmetics from its popular www.jumbomall.com web site. The company has accumulated in excess of 300,000 online customers which form a base to promote new products such as lotteries. Jumbo also provides a range of e-commerce services to customers worldwide from its www.jumbostore.com web site.

For further information, please contact:

Mike Veverka, CEO
Email: mike@jumbocorporation.com
Web: www.jumbocorporation.com


Media Assets
 12092005.pdf