Slide 1: Jumbo Interactive Limited Results Presentation
JUMBO INTERACTIVE LIMITED RESULTS PRESENTATION For the half year ended 31 December 2018 ABN 66 009 189 128 H1 FY19 Results Presentation | 1
Slide 2: Contents
CONTENTS RESULTS HIGHLIGHTS 2 JUMBO LONG TERM GROWTH PROFILE 6 DIVIDENDS OVERVIEW 8 VISION & STRATEGY 9 FINANCIAL PERFORMANCE 12 FINANCIAL POSITION & CASH FLOW 13 OUTLOOK & GUIDANCE 15 H1 FY19 Results Presentation | 1
Slide 3: Results Highlights
RESULTS HIGHLIGHTS NEW SOFTWARE PLATFORM UNDERPINNING A NEW SOFTWARE PLATFORM WENT LIVE IN FY2017 SURGE IN CUSTOMER ENGAGEMENT §§ Gradual migration of customers to the new platform completed early FY 2018 §§ 199,410 new accounts (91.9% increase on pcp 103,912) §§ OzLotto reached $70 million in July
Slide 4: Results Highlights Continued: New Powerball Delivering More Large Jackpots
RESULTS HIGHLIGHTS (CONTINUED) NEW POWERBALL DELIVERING MORE LARGE JACKPOTS §§ New Powerball format a success §§ $100 million Powerball jackpot in August 2018 §§ 23 large jackpots (Oz Lotto/Powerball at or above $15 million) vs 18 in H1 FY18: –– Aggregate value of large jackpots - $860 million vs. $
Slide 5: Significant Growth Achieved in the Half Year
RESULTS HIGHLIGHTS (CONTINUED) SIGNIFICANT GROWTH ACHIEVED IN THE HALF YEAR1 §§ Customer Engagement and more Jackpots driving TTV up 66.0% to $147.9 million (pcp $89.1 million) –– 21.5% of all lottery sales in Australia are now sold online2 - Jumbo continues to participate in this signifi- cant grow
Slide 6: Revenue Diversification on Track
RESULTS HIGHLIGHTS (CONTINUED) REVENUE DIVERSIFICATION ON TRACK §§ Charitable lottery TTV up 23% to $3.6 million –– Complimentary segment to the National Lottery Game segment –– Australian market size for charitable lotteries estimated at $1 billion per year –– 9 products across 6 Charity Lotteries
Slide 7: Demonstrated Long Term Growth
DEMONSTRATED LONG TERM GROWTH TOTAL TRANSACTION VALUE (TTV) REVENUE $32m $150m $30m $140m $28m $130m 5 year CAGR - 10.9% $26m 5 year CAGR - 9.6% $120m $24m $110m $22m $100m $20m $90m $18m $80m $16m $70m $14m $60m $12m $50m $10m $40m $8m $30m $6m $20m $4m $10m $2m $54.7m $52.2m $65.9m $62.6m $80.3m $
Slide 8: Online Lotteries - A Growing Market
DEMONSTRATED LONG TERM GROWTH (CONTINUED) 24% ONLINE LOTTERIES - A GROWING MARKET 22% §§ 21.5% of Australian lottery tickets now sold online1 –– 4 year CAGR 17.7% 20% –– 4 year CAGR 19.2% for Jumbo flagship website % of Australian lottery sales through the online channel 1 21.5% ozlotteries.com (lot
Slide 9: Dividend Overview
DIVIDEND OVERVIEW EXCEPTIONAL SHAREHOLDER RETURN FROM A GROWTH COMPANY §§ Strong cash generative nature of operations supports dividend policy §§ Interim fully franked dividend: –– 15.0 cents per share –– Record date 8 March 2019 –– Payment date 22 March 2019 –– Dividend Re-investment Plan (DRP) con
Slide 10: Vision & Strategy
VISION & STRATEGY 20/20 VISION §§ Developing and Operating the world’s best digital lottery experience §§ 25% Online lottery players by 2020 §§ Significant diversification by 2020 STRATEGY - SOFTWARE PLATFORM §§ Best of breed Software Platform: –– Continuing ongoing development –– Continue to provid
Slide 11: Vision & Strategy Continued: First to Market Online Innovations
VISION & STRATEGY (CONTINUED) STRATEGY - FIRST TO MARKET ONLINE INNOVATIONS §§ Lotto Party - Online lottery syndication: –– First online lottery operator to offer syndication in Australia –– Group play as a percentage of total TTV has increased to 10% –– Combats jackpot fatigue –– Drives growth thro
Slide 12: Vision & Strategy Continued: Game Expansion and Revenue Diversification
VISION & STRATEGY (CONTINUED) STRATEGY - GAME EXPANSION §§ Launch of Set For Life on Jumbo digital assets: –– Expect to launch the popular annuity styled game in FY2019 –– Game performed strongly to date in the Australian market –– Attracting a younger demographic STRATEGY - REVENUE DIVERSIFICATION
Slide 13: Financial Performance
FINANCIAL PERFORMANCE H1 FY19 H1 FY18 Change KEY ITEMS: $’000 $’000 % §§ TTV up 66.0% §§ Revenue up 57.9% Total Transaction Value 147,849 89,085 66.0% §§ Total expenses well managed to be up by Revenue from continuing operations 30,510 19,324 57.9% only 11.0% Cost of goods sold (1,031) (1,168) (11.7
Slide 14: Financial Position
FINANCIAL POSITION at 31 Dec at 30 Jun Change KEY ITEMS: 2018 2018 $’000 $’000 % CASH §§ Strong cash position of $77.3 million (up from $47.9 million at 30 Jun 2018 ASSETS 93,056 62,924 47.9% –– General funds up 68.4% to $67.5 million Current Assets 77,882 48,485 60.6% and includes +- $5.0 million ‘
Slide 15: Cash Flow
CASH FLOW at 31 Dec at 31 Dec Change KEY ITEMS: 2018 2017 $’000 $’000 % CASH FLOWS FROM OPERATING ACTIVITIES §§ Strong cash position of $77.3 million (up from $47.9 million at 30 Jun 2018 Receipts from customers 33,363 21,104 58.1% Payments to suppliers & employees (6,787) (7,952) (14.7%) §§ Payment
Slide 16: Outlook and Guidance
OUTLOOK AND GUIDANCE OUTLOOK: §§ Strong start to January 2019 trading: –– TTV up 152.0% on the prior corresponding period (pcp) –– Record $107.6 million Powerball jackpot event occurred on 17 January 2019 –– 5 large jackpots at or above $15 million vs. 3 in the pcp –– 3 jackpots at or above $50 mill
Slide 17: Outlook and Guidance: Guidance Update
OUTLOOK AND GUIDANCE GUIDANCE UPDATE: §§ Strong results from H1 FY19 together with the strong start to H2 FY19 is expected to deliver higher TTV, Revenue and Earnings for full year FY19 §§ Full year FY19 Guidance1 upgraded as a result: –– TTV about $296.4 million - up about 62% (previously about 44%
Slide 18: Disclaimer
DISCLAIMER This presentation contains summary information about the current All dollar values are in Australian dollars (A$) unless otherwise stated. activities of Jumbo Interactive Limited (Jumbo). It should be read in Neither Jumbo nor any other person warrants or guarantees the future conjunction
Slide 19: H1 FY19 Results Presentation | 18
H1 FY19 Results Presentation | 18