Shareholders of Jumbo Interactive Ltd (ASX: JIN) hit the jackpot today after the internet lottery business provided an updated earnings guidance for the 2015 financial year.
Jumbo Interactive, which operates the popular OzLotteries.com website in Australia (amongst other international websites), reported continued strong growth in its Australian lottery business, driven by its continued investment in proprietary technology and marketing.
This helped the company grow the number of accounts on OzLotteries.com by nearly 12% to 1.92 million. Jumbo said it expects to achieve record Total Transaction Value (TTV) and Revenue for the year just ended, with TTV to increase 24% to $132 million and 33% revenue growth to $32 million.
The company also expects net profit after tax (NPAT) to be roughly $2.6 million, which is 7% below the $2.8 million achieved in 2014, due to a loss incurred in its new German division in what was its first year of operations.
Notably, this division has now been restructured to significantly reduce costs while the company will adopt a similar focus on marketing and technological investment, just as it has done in Australia.
Mike Veverka, the Group's CEO said: "The new structure in Germany is leaner and focused more on closing the gap to break even." Jumbo Interactive's shares rose a solid 10.9% following the announcement to trade at $1.02 per unit, although they have been a poor investment over the last 12 months. In that time, the stock has fallen 22% (and 69% since February 2013), compared to a gain of 17% and 44% for rivals Tatts Group Limited (ASX: TTS) and Tabcorp Holdings Limited (ASX: TAH), respectively.
