Full Year 2024 Jumbo Interactive Ltd Earnings Call Transcript
Key Points
- Significant growth across all key metrics, with Group TTV and revenue up 24% and 34%, respectively.
- Increased dividend by 27%, reflecting strong financial performance.
- Successful digital transformation in Australia, with digital penetration increasing to 40.9%.
- Strong performance in lottery retailing, with a record number of large jackpots and increased active players.
- Positive momentum in SaaS and managed services segments, with TTV and active players up 19% and 27%, respectively.
- Higher operating expenses, including a 76% increase in marketing costs and a 12% increase in employee costs.
- Disappointment in a UK-based acquisition that fell through due to renegotiation of terms.
- Challenges in the Canadian market, with some lottery programs needing reevaluation and a shortfall in Stride's EBITDA.
- Increased technology costs, reflecting higher software license fees and continued investment in data management.
- Potential impact of fewer jackpots in FY25, which could affect revenue growth.
Good morning, everyone, and welcome.
Let me begin by acknowledging the traditional owners of the land in which we meet and pay our respects to elders, past, and present. Today, I'm joined by our CFO, Jatin Khosla, to present our financial results for FY24.
First up are our key highlights for the year. The first half started slow, but the second half really accelerated and we break several records. In lottery retailing, while we had a strong jackpot run in the second half with nearly 1.1 million active players, it's the innovation, positive engagement, and customer experience that contributed to the strong result, along with pricing and product changes we implemented in May '23. As that segment continued the positive momentum with new partnerships with the RSPCA, MS Queensland, along with a four-year extension to our Lotterywest partnership. With the growing business, we've had to really manage our cost base. We've done a great job finding the right balance between cost efficiency and reinvestment
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