The Jumbo Interactive Ltd (ASX: JIN) share price is down 6.5% to $7.20 on Thursday.
This is despite the company posting record underlying EBITDA of $85.2 million, up 25%, with revenue rising 33% to $193.6 million, driven by international expansion and strong managed services growth.
Image source: Getty Images
What did Jumbo Interactive report?
- Revenue of $193.6 million, up 33.2% on FY25
- Underlying EBITDA of $85.2 million, up 24.8% on FY25 (record level)
- Underlying NPAT of $41.4 million, up 3.7%
- Total dividend for FY26 of 27.0 cents per share, fully franked (FY25: 54.5 cps)
- Total Transaction Value (TTV) rose 13.0% to $1,125.8 million
- Dream Giveaways segment contributed $21.8 million in underlying EBITDA
What else do investors need to know?
Jumbo strengthened its international footprint, completing acquisitions of Dream Car Giveaways in the UK and Dream Giveaway in the US. These additions marked a significant move into international B2C markets and delivered positive EBITDA contributions, particularly from the US business.
The Managed Services segment also performed well, underpinned by new business wins in Canada and steady results in the UK. In Australia, lower lottery jackpots impacted ticket sales, but other products and SaaS partnerships partially offset this.
Regarding the Brightstar Lottery opportunity, Jumbo and Brightstar have not finalised commercial terms for a proposed subcontractor arrangement on Lotterywest's new digital solution. Management believes this outcome will have minimal impact on future Group EBITDA.
What did Jumbo Interactive management say?
Speaking about the results, Jumbo's CEO and Founder, Mike Veverka, commented:
FY26 was a defining year for Jumbo. We delivered the highest EBITDA in Jumbo's history and took a decisive step towards becoming a diversified, international, technology-enabled lottery and prize draw company. The acquisitions of Dream Car Giveaways in the UK and Dream Giveaway in the US marked Jumbo's significant move into international B2C markets, building a new growth engine alongside our established Australian business. We now have the ability to apply our software, marketing expertise and operational discipline to accelerate growth in both businesses.
What's next for Jumbo Interactive?
Looking to FY27, Jumbo expects Australia's underlying EBITDA margin to remain between 46% and 50%, while targeting international underlying EBITDA of $36–$40 million. The transition of Dream US to the Jumbo Lottery Platform is set to incur a platform fee, but further international growth remains a key focus.
Jumbo says it will keep its capital management approach flexible, continuing the on-market share buyback program and paying dividends within a 30%–50% payout range. Negotiations for the digital component of the Brightstar project are ongoing, and the company's core SaaS partnership with Lotterywest remains unchanged.
Jumbo Interactive share price snapshot
The Jumbo Interactive share price is underperforming the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a decline of over 35%.
