The Jumbo Interactive Ltd (ASX: JIN) share price could be on the move on Tuesday after a positive announcement was made just a day after the release of its half year results.
What did Jumbo announce?
This morning the online lottery ticket seller announced that it has entered into a new software as a service (SaaS) five-year licence agreement with leading Australian charity lottery operator MS (Multiple Sclerosis) Queensland.
According to the release, the agreement is for the use of its Jumbo Lottery Platform and can be extended to 10 years subject to performance criteria being met.
Under the agreement, MS Queensland will utilise a personalised version of Jumbo's lottery platform to manage its entire lottery sales.
Jumbo Interactive's founder and CEO, Mike Veverka, notes that MS Queensland is now the fourth charity lottery operator in 15 months to choose Jumbo's platform.
Mr Veverka added: "Jumbo appreciates the confidence that MS Queensland has shown and is confident the platform will be pivotal in assisting MS Queensland increase the funds that it generates to support the vital work it does within the community."
"This is another step towards our '$1 billion vision' of $1 billion of lottery tickets sold over our platform by 2022. With four leading charities on board, we are well positioned to continue developing the platform to specifically meet the needs of charity organisations as we expand the business both domestically and internationally," he added.
How did Jumbo perform in the first half?
On Monday the online lottery ticket seller released its half year results and reported total transaction value (TTV) of $185.3 million and revenue of $37.6 million. This represented a 25% and 23% increase, respectively, on the prior corresponding period.
On the bottom line, net profit after tax came in 14% higher at $14.4 million. Although this growth was slower than usual for Jumbo, it was due to investments in its growth and was in line with its guidance.
