The Jumbo Interactive Ltd (ASX: JIN) share price is inching higher today after the company announced it has secured a software licence approval in Great Britain. At the market open, the Jumbo share price originally jumped to $14.10 before retreating to $13.92 at the time of writing for a 0.07% gain so far today. This compares to S&P/ASX 200 Index (ASX: XJO) which is down 0.25% to 6,677 points in intraday trading.
Image source: Getty Images
What did Jumbo announce?
The Jumbo share price is creeping up following the company's report that the Gambling Commission approved and issued a remote gambling software operating licence.
Jumbo will now begin to supply its software-as-a-service (SaaS) platform to licenced operators under the Gambling Commission's umbrella. This will allow end-consumers to use Jumbo's gambling and lottery services in Great Britain.
The newly approved software operating licence is an extension of Jumbo's United Kingdom subsidiary, Gatherwell. The latter holds external lottery manager operating licences (remote and non-remote).
Pleasingly for the company, Jumbo stated that it is able to provide its UK market an increased offering. This includes both a SaaS platform, and a managed charities solution operated by Gatherwell.
What did management say?
Commenting on the positive announcement, Jumbo CEO and executive director, Mr Mike Veverka, said:
We are delighted to achieve this international expansion milestone which, together with our local subsidiary Gatherwell, will drive our growth strategy in the UK charities market. This is an important step in Jumbo expanding its footprint in the UK following the great work carried out by the Gatherwell team to date.
Addressable market
Jumbo revealed that there are currently 168,168 registered charities in England and Wales. These organisations had total estimated revenue inclusive of grants, donations, lotteries and other fundraising activities of 77.404 billion pounds as at 30 September 2018. According to Jumbo, its immediate addressable market is estimated at around 775 million pounds in lottery sales via 'Society Lotteries' and local authority lotteries.
This highlights the scope of opportunity that lies ahead if Jumbo can manage to substantially penetrate this market.
About the Jumbo share price
The Jumbo share price has accelerated since the beginning of the month, delivering 28% gains for shareholders. While still materially down from its pre-COVID-19 levels of above $20, Jumbo has been focusing its strategy on digital expansion.
Should it be able to further harness consumers around the world onto its online platform, the Jumbo share price could shoot higher.
