Slide 1: FY24 Results Presentation
Jumbo Interactive Limited FY24 Results Presentation 23 August 2024
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about the activities of Jumbo Interactive Limited ABN 66 009 189 128 (Jumbo) and its controlled subsidiaries (Group) current as at the date of this presentation. It should be read in conjunction with Jumbo’s other periodic and continuous disc
Slide 3: Business Update
Business Update Mike Veverka Managing Director, CEO and Founder
Slide 4: Key Highlights: Our most successful year to date
Key Highlights Our most successful year to date Business Update By Segment Financials Conclusion | Outlook Record Lottery Positive Retailing Performance SaaS Momentum Positive engagement from +1 million active players A combination of partnership extensions and and pricing and product portfolio chan
Slide 5: Key Metrics: Significant growth across all key metrics
Key Metrics Significant growth across all key metrics Business Update By Segment Financials Conclusion | Outlook Total Transaction Value ($m) Group Revenue ($m) Underlying EBITDA2 ($m) 1,054 159.3 76.6 FY231: 852 (+24%) FY231: 118.7 (+34%) FY231: 58.9 (+30%) Lottery Retailing 544 (FY23: 449) R
Slide 6: FY24 Report Card: Margin at top end of expected range
FY24 Report Card Margin at top end of expected range Business Update By Segment Financials Conclusion | Outlook Outcome • Marketing costs expected to be in the range of 1.5% to 2.0% of TTV (FY23: 1.3%), dependent on jackpots ✓ 1.89% Lottery • Final step up in TLC service fee1 to 4.65% of subscriptio
Slide 7: Lottery Retailing: Ability to maximise strong jackpot run
Lottery Retailing Ability to maximise strong jackpot run Business Update By Segment Financials Conclusion | Outlook Powerball | Oz Lotto Division 1 large jackpots (≥$15m) Rolling 12-month TTV1 More larger jackpots FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 24 28 38 40 32 41 37 43 55 55 100 150 80 120 1
Slide 8: Lottery Retailing: Robust underlying player performance
Lottery Retailing Robust underlying player performance Business Update By Segment Financials Conclusion | Outlook Digital Penetration1 (%) New Players (‘000s) Cost Per Lead ($ / lead) +7% +41% +6% 40.9 423.5 20.42 37.7 38.4 395.9 18.33 18.87 17.86 32.8 28.0 310.5 300.2 243.2 5.00 FY20 FY21 FY22 FY23
Slide 9: Charity | Government Software-as-a-Service: Positive momentum
Software-as-a-Service Positive momentum Business Update By Segment Financials Conclusion | Outlook TTV ($M) Active Players (million) Our Partners +19% Existing SaaS2 232 +27% Charity | Government 26.4% 196 Government Growth 1.7 167 16.7% Charity Growth 1.4 1.2 121 Transitioned to SaaS3 0.9 New SaaS4
Slide 10: Managed Services: Leadership transition complete
Managed Services Leadership transition complete Business Update By Segment Financials Conclusion | Outlook New Leadership Immediate Priorities Significant Long Term Value Tam Watson • New business opportunities Head of Operations – UK including M&A Joined April 2024 20+ years experience in • Organis
Slide 11: Financial Update
Financial Update Jatin Khosla CFO
Slide 12: Underlying EBITDA Up 30% on pcp excluding StarVale
Underlying EBITDA Up 30% on pcp excluding StarVale Business Update By Segment Financials Conclusion | Outlook Underlying EBITDA bridge - FY23 vs FY24 ($M) Underlying BITDA Margin Australia4 52.2% +30% Managed 36.4 Services5 26.4% (9.6) 76.6 75.1 72.8 (9.9) (0.1) (1.4) 3.7 58.1 56.1 (2.1) 32.6% 53.4%
Slide 13: Cost Management: Investment to drive future growth
Cost Management Investment to drive future growth Business Update By Segment Financials Conclusion | Outlook Underlying operating expense bridge - FY23 vs FY24 ($M) 1.4 56.8 55.4 7.4 1.1 0.5 48.0 4.9 42.9 1.4 1.9 38.1 (4.8) 11.6% 499% 75.6% 42.0% 4.7% 26.1% FY23 Adjust- FY23 Employee Employee Market
Slide 14: Lottery Retailing: Positive operating leverage
Lottery Retailing Positive operating leverage Business Update By Segment Financials Conclusion | Outlook TTV ($M) ($M) Revenue ($M) ($M) EBITDA ($M) ($M) 21% 543.8 Revenue Margin EBITDA Margin 20.3% 22.7% 33.4% 34.5% 461.0 449.1 349.0 35% 304.0 123.4 91.1 91.3 40% 71.9 42.6 61.4 27.6 28.8 30.1 30.5
Slide 15: SaaS: Consistent growth
SaaS Consistent growth Business Update By Segment Financials Conclusion | Outlook TTV ($M) ($M) Revenue ($M) ($M) EBITDA ($M) ($M) +19% External 232.4 Revenue Margin EBITDA Margin 4.4% 4.3% 65.3% 64.6% 196.0 50.7 167.5 Internal5 41.9 42.4 120.8 +18% 40.6 33.7 32.8 32.4 34.4 28.4 27.7 22.1 25.9 +16%
Slide 16: Managed Services: Resilient performance
Managed Services Resilient performance Business Update By Segment Financials Conclusion | Outlook FY24 FY231 Variance A$’000 UK2 Canada Total UK3 Canada Total % TTV 169,313 108,075 277,388 103,778 102,278 206,056 34.6% Revenue 17,0654 8,771 25,836 10,543 8,072 18,615 38.8% Cost of Sales (1,479)
Slide 17: Capital Management: Enhanced flexibility
Capital Management Enhanced flexibility Business Update By Segment Financials Conclusion | Outlook • Strong balance sheet with available funds1 of $60.9m (FY23: $41.2m) Available Funds ($m) FY24 FY23 Cash and cash equivalents 69.0 54.54 • Refinanced existing debt facilities via a new financing packa
Slide 18: Cash Generation: Strong organic capital generation
Cash Generation Strong organic capital generation Business Update By Segment Financials Conclusion | Outlook Cash Flow Reconciliation ($M) Pro forma adjustments 60.7 124.8% (FY23: 150.6%) Cash Conversion Ratio1 (6.2) (0.4) 50.0 93.6 9.5 (29.6) (0.5) 69.0 (9.5) 60.9 54.5 (17.6) (17.3) $54.1m (FY23: $
Slide 19: Capital Management Framework
Capital Management Framework Business Update By Segment Financials Conclusion | Outlook Focused on executing our growth strategy while maximising shareholder value Future capital dynamics and dividend policy (Illustrative) Uses Objective Description Invest in Product development Debt Repayment 1 Gro
Slide 20: Conclusions & FY25 Outlook
Conclusions & FY25 Outlook Mike Veverka CEO and Founder
Slide 21: FY24 Results: Successfully growing earnings and cash
FY24 Results Successfully growing earnings and cash Business Update By Segment Financials Conclusion | Outlook Revenue ($M) EBITDA ($M) Operating Cash Flow ($M) 159 +20% p.a. +13% p.a. +9% p.a. 5-year CAGR (FY19 to FY24) 5-year CAGR (FY19 to FY24) 5-year CAGR (FY19 to FY24) 119 54.5 104 44.5 42.5 43
Slide 22: FY25 Outlook
FY25 Outlook Business Update By Segment Financials Conclusion | Outlook Australia (Lottery Retailing + SaaS + Corporate) Managed Services (UK2 | Canada) Group 51% - 53% 21% - 23% 46% - 48% Underlying EBITDA Margin Underlying EBITDA Margin Underlying EBITDA Margin (FY24: 52.2%) (FY24: 26.4%) (FY24: 4
Slide 23: Artificial Intelligence
Artificial Intelligence Business Update By Segment Financials Conclusion | Outlook Established Initiatives Developing Initiatives Staff Empowerment AI-focused team Provide training and tool to enhance We’ve established a dedicated team at coding, provide fast access to focused on AI. Their task is t
Slide 24: Oz Lotteries: Enhancing the player experience
Oz Lotteries Enhancing the player experience Business Update By Segment Financials Conclusion | Outlook Daily Winners Driving Player Engagement • Enhance the loyalty program with new exclusive rewards and partnerships supporting the premium proposition of Oz Lotteries. • Grow the member base (free a
Slide 25: Growth and Diversification over time
Growth and Diversification over time Business Update By Segment Financials Conclusion | Outlook Revenue by Segment ($M) • Australian Centric • One customer • Government Lottery $159M Lottery Retailing Managed Services SaaS FY24 Revenue $40M FY18 Revenue 4x Six years later • Global Footprint • Divers
Slide 26: A lot more to come…
A lot more to come… Business Update By Segment Financials Conclusion | Outlook 1 2 3 Underlying Lotteries Growth Digital Penetration Growth in Active Players TBU 4 5 6 International Expansion | M&A New Revenue Opportunities Product Development and Innovation (including AI) FY24 Results Presentation
Slide 27: Questions
Questions
Slide 28: Supplementary Information
Supplementary Information
Slide 29: Jumbo is a digital lottery specialist
Jumbo is a digital lottery specialist We provide our proprietary lottery software platform and lottery management expertise to the charity and government lottery sectors. Business mix (based on FY24 revenue) FY24 Results Presentation – 23 August 2024 28
Slide 30: Our three operating segments
Our three operating segments 1 2 3 Lottery Retailing Software-as-a-Service Managed Services We provide our lottery platform and lottery management services to charities and causes that are looking to We license our ‘Powered by Jumbo’ establish a lottery program or enhance Jumbo is an authorised rese
Slide 31: Active players provide the foundation for future growth
Active players provide the foundation for future growth Active players who made a purchase in the 12-month period (millions) Canada 4.6 United Kingdom Australia 4.0 2.9 1.8 1.0 0.8 0.3 0.4 0.4 0.4 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY221 FY231 FY24 1. Stride active players restated to align with Gro
Slide 32: Consistent and resilient growth over the long term
Consistent and resilient growth over the long term Australian lotteries sales over time ($bn) Recession Recession GFC COVID-19 8.5 7.9 7.8 7.2 6.5 6.6 3.9% p.a. 3.8% FY90 to FY24 CAGR 5.2 5.3 5.2 4.8 4.8 4.9 5.0 4.7 4.5 4.4 4.3 4.1 3.7 3.8 3.9 4.0 3.4 3.5 3.1 3.2 3.2 3.0 2.9 2.6 2.7 2.7 2.8 2.9 2.4
Slide 33: Growth in online penetration
Growth in online penetration Australian lottery sales through the online channel (%) % Retail Online 100 94 93 92 91 90 80 87 86 83 77 72 60 67 62 62 59 38 38 40 33 41 28 24 20 17 13 14 9 10 7 8 6 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Source: Tabcorp | TLC company rep
Slide 34: Significant growth potential from online penetration
Significant growth potential from online penetration 20221 total internet revenues as a % of total lottery sales 69% 70% >50%5 62% $90M OzLotto (26 Dec 2023) 57% 55% 52% 53% 50% 47%5 45% 45% 46% $200M Powerball 41% 43% (1 Feb 2024) 40% 28% 24% 25% 23% 12% 12% 10% 10% 5% 3% North OLG2 North Austria I
Slide 35: Average TTV per draw remains robust
Average TTV per draw remains robust 8.0 Powerball (≤$50 million) 3.5 OzLotto (≤$50 million) 7.0 Aug-24 3.0 6.0 2.5 5.0 2.0 4.0 1.5 3.0 1.0 2.0 1.0 0.5 - - FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 <$20 million $20 million ≥$40 to $50 million ≤$5 million $10 million ≥$20 t
Slide 36: Our blueprint for acquisitions
Our blueprint for acquisitions Our M&A strategy seeks to enhance the existing portfolio by acquiring new businesses that enable access to new markets, complementary capabilities and propositions, and to build operating scale. Strategic rationale 1 2 3 Access to new Develop complementary Consolidate
Slide 37: Group FY24 Reconciliation to FY24 reported earnings
Group FY24 Reconciliation to FY24 reported earnings Statutory Underlying Add/(deduct) significant one-off items $’000 FY24 FY23 #039;000 FY24 FY23 Variance FY24 FY23 Variance EBITDA 75,147 58,146 29.2% 76,563 58,915 30.0% Acquisition costs2 1,363 115 EBIT 62,789 46,851 34.0% 64,205 47,620 34.8% Retenti
Slide 38: Group FY24 Consolidated Results
Group FY24 Consolidated Results FY24 FY23 Variance #039;000 1HY 2HY FY24 1HY 2HY FY23 1HY 2HY FY TTV 484,482 569,131 1,053,613 417,045 434,888 851,933 16.2% 30.9% 23.7% Revenue 73,884 85,450 159,334 62,389 56,323 118,712 18.4% 51.7% 34.2% Cost of sales (12,682) (14,857) (27,539) (9,853) (8,100) (17,953
Slide 39: Group FY24 Segment Results
Group FY24 Segment Results Lottery Managed Corporate3 | Australia #039;000 SaaS Total Retailing Services Eliminations (LR + SaaS + Corp) TTV - Group 543,819 - - - 543,819 543,819 TTV - Third-party - 232,406 277,388 - 509,794 232,406 Total TTV 543,819 232,406 277,388 - 1,053,613 776,225 Revenue – Extern
Slide 40: Group FY24 Lottery Retailing
Group FY24 Lottery Retailing Financials FY24 FY23 Variance % Lotteries TTV $’000 531,445 441,606 20.3% TTV by Product (%) Charity TTV $’000 12,374 7,479 65.4% 2% 7% Total TTV $’000 543,819 449,085 21.1% Revenue $’000 123,404 91,287 35.2% 15% 1 Cost of sales $’000 (64,181) (49,791) 28.9% Gross Profit
Slide 41: Group FY24 Managed Services Results (Local Currency)
Group FY24 Managed Services Results (Local Currency) Gatherwell (£’000) StarVale1 (£’000) UK2 (£’000) Stride (C#039;000) FY24 FY23 Var % FY24 FY23 Var % FY24 FY23 Var % FY24 FY23 Var % TTV 12,635 11,733 7.7% 75,502 46,677 61.8% 88,137 58,410 50.9% 96,027 94,446 1.7% Revenue 3,0903 2,083 48.3% 5,793 3,8
Slide 42: Financial Framework and P&L Drivers
Financial Framework and P&L Drivers Lottery Managed Corporate | SaaS Retailing Services Eliminations • % of External TTV • % of TTV • Removal of SaaS Revenue • Revenue Margin % x TTV • Intersegment Fee: % of LR • Fee for Service4 Intersegment Fee2 TTV2 • TLC Service Fee: % of subscription ticket cos