The All Ordinaries Index (ASX: XAO) is down 0.3% today, with ASX All Ords stock Jumbo Interactive Ltd (ASX: JIN) not helping matters.
Shares in the digital lottery company closed yesterday trading for $15.99. In late morning trade on Friday, shares are trading for $14.06 apiece, down 12.1%
This underperformance comes following the release of Jumbo Interactive's results for the full year ended 30 June (FY 2024).
Here are the highlights.
Jumbo Interactive share price tumbles despite revenue surge
- Total transaction value (TTV) up 23.7% year on year to $1.054 billion
- Revenue up 34.2% from FY 2023 to $159.3 million
- Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) up 30.0% to $76.6 million
- Underlying net profit after tax and amortisation (NPATA) up 31.5% year on year to $46.4 million
- Final, fully franked dividend of 27.5 cents per share, up 37.5% from the prior final dividend
What else happened with the ASX All Ords stock during the year?
Among the few negative metrics reported by the ASX All Ords stock was the 1.5% decline in underlying EBITDA margin to 48.1%, down from 49.6% last year.
Management said the margin contraction reflects the final step-up in the service fee paid to The Lottery Corporation and the lower margin profile of its emerging Managed Services segment, which includes its United Kingdom and Canadian operations.
As for the Lottery Retailing segment, the company noted that the favourable run of large jackpots combined with pricing and product portfolio changes it implemented in May 2023 saw TTV up 2.1% and revenue up 35.2%, year on year. EBITDA increased 39.6% to $42.6 million.
Jumbo Interactive's Software-as-a-Service (SaaS) segment also posted another year of growth, with TTV up 18.6% and external revenue growth of 15.9%, though with a revenue margin slipping 0.1% from FY 2023 to 4.3%.
As at 30 June 2024, $3.2 million worth of shares from the ASX All Ords stock's on-market share buyback program of up to $25 million had been purchased. The company said it intends to accelerate the on-market share buyback program.
What did management say?
Commenting on the strong results that are nonetheless sending the ASX All Ords stock sharply lower, Jumbo Interactive CEO Mike Veverka said, "The 2024 financial year is Jumbo's most successful to date with over $1 billion in transaction value achieved and a 30% increase in underlying EBITDA."
Veverka added:
For the first time in our history, we exceeded 1 million active players in our Lottery Retailing segment, highlighting our ability to engage with our existing players and acquiring new players during periods of large jackpots.
What's next for the ASX All Ords stock?
Jumbo's FY 2025 guidance looks to be putting the ASX All Ords stock under much of its selling pressure today.
While the company's FY 2024 largely exceeded consensus expectations, Jumbo forecast an underlying EBITDA margin of 46% to 48% for FY 2025. That's below market expectations. And even at the top end, this is expected to be lower than the EBITDA margin of 48.1% in FY 2024 and 49.6% in FY 2023.
Nonetheless, Veverka foresees strong growth in the year ahead.
"Our significantly larger active player base, focus on player experience, innovation, and stable service fee to The Lottery Corporation, mean we are very well positioned to grow in FY 2025," he said.
Jumbo Interactive share price snapshot
With today's sharp fall in the Jumbo Interactive share price factored in, the ASX All Ords stock remains up 2% year to date.
