Why the Jumbo Interactive Ltd (ASX: JIN) share price hit a record high today

Jumbo Interactive Ltd (ASX:JIN) shares might be a better bet than its lotto tickets.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Jumbo Interactive Ltd (ASX: JIN) share price is up 9% to $8.39 in trade today after the lottery operator and online ticket seller told investors to expect a strong first half to the fiscal year ending December 31, 2018. Below is a summary of what Jumbo told the market:

  • First half profit should be up 123% to $11.8 million
  • First half EBITDA should be up 66% to $32.3 million
  • First half revenue should be up 55% to $29.9 million
  • First half total transaction value should be up 64% to $145.8 million
  • Forecast number of large jackpots $15 million or more 21 – an increase of 17%

"The strong performance in the first half is driven by continual improvements in our software platform and online marketing that have engaged existing customers and as well as acquired new customers, taking advantage of the favourable jackpot activity, " commented Mike Verveka CEO and founder of Jumbo Interactive.

Jumbo is the group behind the popular OZ Lotto and Powerball lotteries and in its profit upgrade today acknowledged that the more large jackpots (>$15 million or more) available the more inclined people are to take a chance on buying tickets. This in turn drives sales or total transaction value, with the fact that sales rise faster than relatively fixed costs meaning profits rise even quicker.

In response to this bright news the share price hit a record high of $8.75 today and the question for investors is whether the $460 million company has more fuel in the tank.

A lot of Jumbo's growth strategy is based around attracting new players to its ozlotteries.com offerings via internet marketing and new technologies like mobile applications for the iPhone or Google Voice. Its ozlotteries.com website is operated in partnership with betting king Tabcorp Holdings Ltd (ASX: TAH) that is also in a battle with rivals to win market share as gambling activity shifts online from traditional over-the-counter methods.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Yulia Mosaleva has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Jumbo Interactive Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

The markets lost their steam this Thursday.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
Share Gainers

Why Catapult, Hutchinson, SKS, and West African shares are pushing higher today

These shares are having a strong session despite the market weakness.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Gold

Up 72% in 2025, why is this ASX 200 gold stock racing ahead of the benchmark again today?

Investors are bidding up this high-flying ASX 200 gold stock again on Thursday. But why?

Read more »

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a wonderful Wednesday session for investors today.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Gold

3 reasons this ASX 200 gold mining giant could soar higher into 2026

A leading expert forecasts more outperformance from this surging ASX 200 gold stock.

Read more »