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Internet lottery business Jumbo Interactive (ASX:JIN) is expecting a rise in net profit after tax (NPAT) of 45 per cent and a rise in total transactional value (TTV) of 25 per cent for the 2018 financial year.
Jumbo's trading update reveals NPAT is expected to rise from $7.6 million in the prior corresponding period to around $11 million while TTV will be in the $182 million range, up from $145.3 million.
Jumbo Interactive, number 37 on our Brisbane Top 50 Companies List, says revenue will also rise by 15 percent to $37.3 million, driven mostly by growth in its active customer base.
"The strong performance expected in the financial year is driven by continual improvements in marketing that have engaged existing customers as well as acquiring new customers", says Mike Veverka, CEO and founder of Jumbo Interactive (pictured).
The company says that although the frequency of large jackpots is expected to be much the same as the previous comparable period (31 in FY17), the average large jackpot value is expected to be higher which is also part of the reason for the solid numbers.
Jumbo announced that a fully franked special dividend of 8 cents per ordinary share has been declared which is the second special dividend paid in FY2018.
Its dividend reinvestment plan will be suspended for the fully franked special dividend. Veverka says this leaves the company in a sound position in terms of cash and franking credits for ongoing capital management considerations, including but not limited to, potential acquisitions and expansion opportunities.
Jumbo Interactive Limited sold its first lottery ticket on the internet in 2000 and has grown because of the convenience of buying tickets online.
It operates the website www.ozlotteries.com in Australia under agreements with the Tabcorp Group (ASX: TAH), following the merger with the Tatts Group in December 2017.
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Business News Australia
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