Jumbo Interactive Ltd (ASX: JIN) shares are on the move on Wednesday morning.
At the time of writing, the ASX 300 stock is down 3.5% to $10.15.
Image source: Getty Images
Why is this ASX 300 stock tumbling?
Investors have been selling the lottery ticket seller's shares following the release of a preliminary update on its first-half results.
The ASX 300 stock delivered strong profit growth during the half despite a softer lottery jackpot environment.
According to the release, Jumbo revealed that revenue is expected to rise 29% to $85.3 million in the first half, after total transaction value (TTV) increased 15.7% to $524.7 million.
Also growing at a strong rate was its underlying EBITDA, which is expected to be $37.5 million for the first half. This is up 22.6% from $30.6 million in the prior corresponding period.
What drove the strong performance?
Jumbo's strong performance during the first half is notable because the broader lottery environment was relatively weak. There were fewer large Powerball and Oz Lotto jackpots, no jackpots above $100 million, and a sharp drop in total prize value compared to last year.
Historically, jackpots tend to drive higher lottery spending, so this was a headwind for the sector.
Despite this, Jumbo's Lottery Retailing division delivered a resilient result, with TTV broadly flat year on year. The company said this was supported by continued momentum in charity and proprietary products, which helped offset the quieter jackpot cycle.
Away from traditional lottery retailing, growth was stronger. Jumbo's SaaS segment recorded TTV growth of 9.9%, and 12.4% excluding Lotterywest, showing that its B2B platforms continue to scale.
Managed Services was another bright spot, with underlying EBITDA up more than 50%, driven by good momentum in Canada and disciplined execution in the UK.
Another contributor to the result was the ASX 300 stock's recent expansion into prize-based giveaways. Jumbo completed the acquisitions of Dream Car Giveaways UK and Dream Giveaway USA in October 2025. Management said the UK business in particular is performing ahead of expectations.
What about its dividend?
No dividend was announced with its preliminary results. Management advised that its payout will be determined once the audited results are finalised later this month and will reflect its revised payout ratio of 30% to 50% of statutory net profit.
