Half Year Results to December 2006

Feb 28, 2007

ASX RELEASE – Wednesday 28th February 2007

Leading Australian online lotteries and ecommerce company, Jumbo Corporation Limited, today announced its 9th consecutive half year profit. The audited results for the 6 months to December 2006 include a revenue of $8.9 million, EBITDA of $269,018 and a net profit after tax of $214,274.

The result was driven by an 19% half year growth and 50% full year growth in Internet sales (Ozlotteries.com), however non-Internet sales declined 25% over the half year. There was also significant development over the half year in the new Ozlotteries.com web site (launched 20 October 2006) and the new Million Dollar Lottery (launched 12 December 2006).
 
“We have commenced reinvigorating our Pacific Island Lottery Network so that it makes a positive contribution to our overall result”, said Mr Mike Veverka, CEO of Jumbo.
 
“Ozlotteries.com performed very well following the release of the new web site in October 2006 with a record month of sales in December 2006”, he said.  
 

Good Start to 2007

 
Sales are off to a good start in 2007 with February Internet sales reaching near record levels and almost eclipsing the record sales in December 2006. This was driven by a large Powerball $33 million Jackpot and a growing active customer database.
 
The following schedule summarises the results and replaces the previous schedule announced on 9 February 2007.  
    HY Dec 06   HY Jun 06   HY Dec 05
  Revenue  

$8.9 mil

 

$8.8 mil

 

$7.8 mil

  EBITDA   $269,018   $284,921   $585,049
  Net Profit After Tax   $214,274   $309,563   $477,410
 

Operations Summary

Jumbo has agreements with Tattersalls’ and NSW Lotteries Corporation to resell tickets in popular Australian lotteries such as OzLotto and Powerball. The tickets are sold on the Internet via www.ozlotteries.com with sales driven by an aggressive search engine marketing campaign and an expanding affiliates network.
 
Jumbo also owns and operates a network of lottery terminals throughout a number of Pacific Islands such as Fiji, the Cook Islands and Norfolk Island. The terminals sell tickets in Australian lotteries and are promoted via traditional marketing on the islands. Sales were affected by a number of factors in the past 6 months, the most significant being the December 2006 military coup in Fiji, just prior to the busiest period leading up to the December 30 Superdraw.
 
“A recent review of the pacific island operations has determined there is potential for growth so we have commenced a program to reinvigorate this operation over the coming year”, said Mr Veverka.
 

Future Growth through Acquisitions

 
Jumbo is expanding its scope for future growth by reviewing acquisition opportunities in the E-Commerce and Information Technology Industries. The company has significant experience in the E- Commerce industry dating back to 1995 with the development of some of the first software applications in the world to handle secure online sales.
 
For further Information:
Mike Veverka
CEO,  Jumbo Corporation
(07) 3831 3705


Media Assets
 28022007.pdf