Profit Upgrade - September 2007

Sep 18, 2007

ASX RELEASE – Tuesday 18 September 2007

A significant turnaround in earnings and revenue in the current financial year has today been announced by Jumbo Corporation Limited following its successful acquisition of Manaccom.

As  announced  on  Monday  this  week,  Jumbo  has  successfully completed the Manaccom acquisition with the payment of $2.5 million cash and the issue of 80 million shares.
 
The expected results reflect the contribution of the newly-acquired Manaccom business for 10 months of the current 2007-08 Financial Year are as follows:
 
   FY08 Range  FY07 Actual  FY06 Actual
 Revenue Range  $30 million to $38 million  $17.9 million  $16.6 million
 EBITDA Range  $750,000 to $2,000,000  $38,113  $869,970
 Net Profit After Tax Range  $400,000 to $1,300,000  $739,790 loss  $786,973 profit
 
Following 4 years of profitable results from 2002 to 2006, the Company recorded a loss in 2007 due mainly to  impairment of investments, network upgrade and development costs required to build a platform for future growth. In September 2007, Jumbo’s lottery division signed an exclusive alliance agreement with Yahoo!7 to operate the “Yahoo!7 Lotto” web site due for public release 1 October 2007.
 
The worst case, budget and best case expected results are as follows:  

 

  FY08 Expected Results   Worst Case  Budget   Best Case
  Revenue   $30 million   $35 million   $38 million
  EBITDA   $750,000   $1,600,000   $2,000,000
  Net Profit After Tax   $400,000   $1,000,000   $1,300,000
   
About Jumbo 
 
Following the acquisition of Manaccom, Jumbo is now logically divided into 3 divisions.
 
1. Lottery Division. Responsible for selling Australian lotteries  to  the  public  from www.ozlotteries.com and from stores in a number of Pacific countries including Fiji and Norfolk Island. The Company has signed an Alliance Agreement with Yahoo!7 and has Reseller Agreements with Tattersalls’ and NSW Lotteries Corporation.
 
2. IT Division – Manaccom. Publishes and markets popular software titles through large retailers and independent resellers. Key relationships include Harvey Norman, Dick Smith, Officeworks, JB  HiFi and Trend Micro. Manaccom received the Harvey Norman Software & Portable Media Supplier of the Year award in 2007.
 
3. Jumbo Interactive. This newly formed division generates, sells and manages Internet-based traffic and advertising. It includes JumboAffiliates.com which is a promotional network connecting Internet sellers (merchants) with online marketers (affiliates). New projects are planned to further grow the network’s traffic generation and sales capabilities.
 

Jumbo commenced operations in 1995 in the early days of the Internet with the development of one of the first e-commerce systems providing online merchants with tools to operate  their  own  online stores (www.jumbostore.com). Since then the Company has steadily grown and acquired businesses such as TMS Global Services to form the Lottery Division and Manaccom to form the IT Division.  

For further Information:

Mike Veverka
CEO, Jumbo Corporation
(07) 3831 3705

www.jumbocorporation.com


Media Assets
 18092007.pdf