The online lottery operator is seeking new business in Australia, UK, Canada and the US after announcing growth in annual revenue.
Australia.- Internet lottery company Jumbo Interactive has its eyes on international expansion after revealing positive annual results.
In its full-year 2020 report, the company says it aims for further internationalisation, especially for its Software as a Service (SaaS) unit, which has detected a AU$26 billion (US$18.8 billion) potential market in Australia, UK, Canada and the US.
It says it aims for international business to be equal or bigger than its Australian business by 2026. It plans to drive a sustainable software businesses in the UK, the US and Canada in order to establish a beachhead in each region from where to grow into other markets and sectors.
Richard Bateson, the company’s International Lottery Advisor, said: “Jumbo’s Management has an opportunity to export its SaaS business model and its lottery management proposition to the international lottery market. Focusing on two sectors: the government and charity lottery sectors.
“These markets are the beginning of Jumbo’s expansion into the European and North American markets. Management believes that focus is key to success in the early days of expansion so it has defined an approach that will focus on prioritising government or charity sectors, market-by-market.”
In December 2019 Jumbo entered the UK market with the acquisition of Gatherwell Limited.
Jumbo announced that revenues increase by 9 per cent year-on-year to AU$71.1 million (US$51.4 million) for the 12-month period ending June 30.
Total transaction value grew 9 per cent to AU$349 million (US$252.5 million), and EBITDA totalled AU$43.2 million (US$31.2 million), up 8 per cent on 2019.
This growth was driven by 9 per cent increase in active users, to 827,411.
The company managed to grow during a period of lower jackpot activity, cycling from very strong results in 2019.
Tthe firm declared a 17.0c final dividend for the period, adding to the first half dividend of 18.5c.
Mike Veverka, CEO and founder, said: “Covid-19 restrictions helped drive players online which helped deliver an increase in ticket sales despite lower jackpots compared to the previous strong year.”
The firm stressed in its results presentation that “while many lotteries worldwide have suffered” for not having online channels during the pandemic, Australia has performed well, with no supply chain issues
Contactless payments were expanded during the period, according and consumer habits shifted to online lottery, with a 24 per cent spike in the 65+ demographic online in April 2020. It also saw a trend of larger spending in this older demographic.