The Jumbo Interactive Ltd (ASX: JIN) share price is trading lower on Thursday following the release of its first quarter update.
At the time of writing, the online lottery ticket seller's shares are down 2.5% to $11.12.
How did Jumbo perform in the first quarter?
Despite what its share price decline might indicate, Jumbo has been a relatively positive performer during the first quarter. This was despite the company facing a sizeable decline in large jackpots.
According to the release, Jumbo has recorded a 36% increase in sales from jackpots under $15 million over the last 12 months. This helped to partially offset a reduction in large jackpots to 8 from 13 and a peak jackpot of $80 million compared to $150 million in the prior corresponding period.
This ultimately led to Jumbo reporting consolidated total transaction value (TTV) of $108 million and consolidated revenue of $22.3 million for the quarter. This was down 6% from $115 million and down 2% from $22.8 million, respectively, compared to the prior corresponding period.
Jumbo's revenue was boosted by an 80 basis points increase in its revenue/TTV margin from 19.8% to 20.6%.
Jumbo's CEO, Mike Veverka, was pleased with the company's performance given the challenging trading conditions.
He commented: "In the opening quarter, when large jackpots were down 38% on the pcp and the peak jackpot reached $80m compared to the record $150m jackpot a year ago, I am pleased to announce a significant improvement in Jumbo's underlying performance, including in our key lotteries business, where like-for-like sales increased by between 26% and 64%."
"This contributed to a group revenue result which was down just 2% on the pcp and demonstrates our superior ability to continue to deliver engaging and entertaining experiences to our customers," he added.
Management notes that its performance was driven by stay-at-home restrictions driving customers online, a growing contribution from the Powered By Jumbo SaaS business, and improved data analytics. The latter is enhancing its customer engagement.
Outlook.
No guidance was given for the remainder of the first half or the full year. However, Mr Veverka remains positive on the future.
"I am proud of the commitment and performance of our whole team in this challenging environment. We look to the future with the confidence that we have a resilient business in strong financial shape, allowing us to sustainably grow our customer base as we continue to invest in our existing businesses and capitalise on our options for growth." the CEO concluded.
