Jumbo Interactive expects 27% revenue growth, FY22 update

The e-commerce and online retailing technologies developer, Jumbo Interactive Limited, released an update on its preliminary results late last week. The company said it is expected to release its FY22 (fiscal year 2022) results on August 26, 2022. But ahead of the release, Jumbo updated the expectations for its preliminary FY22 results.

According to the recent announcement, Jumbo expects its preliminary revenue for the fiscal year 2022 to hit CA$103.8m ($80m), up 27.1% when compared to the reported FY21 revenue of CA$83.3m ($64.2m). The company revealed it expects to see preliminary TTV reach CA$660.1m ($508.5m) for FY22, up 35.5% when compared to the reported TTV for FY21 which was CA$487.0m ($375m).

Additionally, Jumbo revealed it expects to see underlying EBITDA reach CA$54m ($41.6m), up 13.7% when compared to the CA$48.9m ($37.7m) in underlying EBITDA reported for FY21. Last but not least, the company said it expects to see preliminary underlying NPAT hit CA$31.6m ($24.3m). This result may mark an increase of nearly 16% when compared to the CA$28.3m ($21.8m) in underlying NPAT reported for FY21.

Focusing on the outlook for FY23, Jumbo said it expects to see retail costs of goods to be impacted. The company explained that this is primarily the result of the Lottery Corporation service fee increase from 2.5% to 3.5%.

Jumbo also said it expects marketing costs to "be in the range of 1.5% to 2.0% of Lottery Retailing TTV." Regarding jackpots, the company outlined: "Jackpots remain a significant driver of Lottery Retailing ticket sales (and revenue) and in any given year there is uncertainty as to the exact number and aggregate value of large jackpots."

In a statement released on July 15, 2022, Jumbo's CEO and Founder, Mike Veverka, shared his excitement. He outlined that the company is enjoying the strong growth it achieved for FY22. According to Veverka, that growth was primarily driven because of "an improved jackpot cycle."

What's more, Jumbo's CEO and Founder acknowledged that the 2022 fiscal year was incredibly important for the company. He revealed that during FY22, Jumbo focused on creating a strong foundation which in turn will help it complete its global growth strategy.

In conclusion, Veverka said: "Lottery Retailing is exceptionally well positioned to benefit from the ongoing shift to digital and the new OzLotto game launched in May 2022 while the integration of Stride and StarVale will help us build scale in our Managed Services and SaaS segments globally."

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