Jumbo Interactive Limited · ASX:JIN

Jumbo Interactive — H1 2024 Earnings Presentation

38 slides from Jumbo Interactive's earnings presentation, Feb 23, 2024

  1. Slide 1: 1H24 Results Presentation

    For personal use only 1H24 Results Presentation For the half-year ended 31 December 2023 23 February 2024

  2. Slide 2: Disclaimer

    Disclaimer For personal use only )56@=?2@2;A.A6<;0<;A.6;@@B::.?F6;3<?:.A6<;./<BAA52.0A6C6A62@<3 B:/< )56@=?2@2;A.A6<;:.F0<;A.6;02?A.6;3<?D.?19<<86;4@A.A2:2;A@6;09B16;4 ;A2?.0A6C2"6:6A21$ ,%'.;16A@0<;A?<9921 @A.A2:2;A@?24.?16;4 B:/<K@0B??2;A.;A606=.A21/296232E=20A.A6<;<? @B/@616.?62@)',( 0B??2;A.@.AA

  3. Slide 3: Business update

    For personal use only Business update Mike Veverka CEO and Founder "D<1> )4BD;CB

  4. Slide 4: 1H24 key highlights

    1H24 key highlights For personal use only H :=?<C21?2C2;B2 H ))+4?<DA5 H '20<?1.A52?D299 H <;A6;B21 H (A?<;4/.9.;02 :.?46;1B2A<=?606;4 1?6C2;/F#.A2? D2289FA6082A@.92@ 6;C2@A:2;A6; @522A.;1392E6/696AF .;1=?<1B0A=<?A3<96< .;1"<AA2?FD2@A 6; .BA<:.A6<;.;1 A<@B==<?A4?<DA5 05.;42@ H EA2;121 H $2D92.12?@56

  5. Slide 5: 1H24 Group result overview

    1H24 Group result overview TTV ($m) Revenue ($m) Underlying EBITDA1 ($m) )4E4=D4<0A68= ,=34A;H8=6!+<0A68= For personal use only Underlying NPATA1,2 ($m) Free cash flow4 ($m) Dividend declared (cps) ,=34A;H8=6'* 2?B '2146'&!#&,756'&(1410'1((+6'/51( -+0 -#0&'2146'&!#&,756'&(1410'1((+6'/51( -+0 -4'52'%

  6. Slide 6: Lottery Retailing

    Lottery Retailing B@A?.96.;@.92@<31646A.99<AA2?FA6082A@B=A< 9.?427.08=<A@%G"<AA< &<D2?/.99I : 7.08=<A@ For personal use only C2?.42C.9B2=2?9.?427.08=<A1<D; A< : : % of AUS lottery sales through the online channel1 Aggregate Division 1 Jackpots2 ($m) '8-+ 0')165:9 A 3 : : : : : : : / / / / / / / <-<'

  7. Slide 7: Lottery Retailing

    Lottery Retailing ;2D=9.F2?@3<?A52@6E:<;A5@2;121 202:/2? 1<D; C@=0= 0<@A=2?92.13<?A52@6E:<;A5@2;121 202:/2? 1<D;C@=0= For personal use only .0A6C2=9.F2?@3<?A52 :<;A5=2?6<12;121 202:/2? 1<D; C@=0= .C2?.42@=2;1=2?<;96;2.0A6C2=9.F2?3<?A52 :<;A5=2?6<12;121 202:/2? B= Oz Lotteries Moving Annual Total (MA

  8. Slide 8: Software-as-a-Service (SaaS)

    Software-as-a-Service (SaaS) For personal use only Active players (‘000) TTV ($m) >E4A=<4=C 70A8CH "D<1> )4BD;CB

  9. Slide 9: Managed Services

    Managed Services Emerging Managed Services segment Significant long term growth opportunity For personal use only Revenue (AUD$m) 2@D8A43&>E 2@D8A43"D= $0D=274341 2@D8A4342 / / / /'A>5>A<0 BBD<4B <>=C72>=CA81DC8>=5A><*C0A-0;4F78272><?;4C43>= &>E4<14A "D<1> )4BD;CB

  10. Slide 10: Financial results

    For personal use only Financial results "D<1>/)4BD;CB "D<1>/ / / "D<1>/ )4BD;CB )4B 4BD;CB D;CB D; CB

  11. Slide 11: Underlying EBITDA

    Underlying EBITDA Underlying EBITDA 1H24 vs 1H23 ($’000) For personal use only !+<0A68= !+ &=4 >55B *C0A-0;4 !+ )4E4=D4 >BC>5B0;4B &?4A0C8=6 &C74A !+ *C0A-0;4 !+ &=4 >55B !+ A4?>AC43 <>=C7B D=34A;H8=6 4G?4=B4B 8=2><4 D=34A;H8=6 D=34A;H8=6 A4?>AC43 !=2;D34B :>502@D8B8C8>=4G?4=B4BA4;0C43C>C7402@D8B8C8

  12. Slide 12: Lottery Retailing

    Lottery Retailing TTV ($’000) Revenue ($’000) EBITDA ($’000) For personal use only )4E4=D4<0A68= !+<0A68= 70A8CH ><<4A280; "D<1> )4BD;CB

  13. Slide 13: Software-as-a-Service (SaaS)

    Software-as-a-Service (SaaS) TTV ($’000) Revenue ($’000) EBITDA ($’000) For personal use only GC4A=0;)4E4=D4<0A68= !+<0A68= GC4A=0; GC4A=0; !=C4A=0; gt;CC4AH)4C08;8=6?0HB0;824=245444@D8E0;4=CC> >5A4;4E0=Cgt;CC4AH)4C08;8=6++-C>*00*A42>6=8B438=gt;CC4AH)4C08;8=62>BC>5B0;4B0=3*00*N8=C4A=0;A4E4=D4 "D<1> )4B

  14. Slide 14: Managed Services

    Managed Services *;6A21!6;41<: .;.1. B@A?.96. ?<B= For personal use only 0C74AF4;; *C0A-0;4 *CA834 "D<1>D=3A08B8=6 $0=0643*4AE824B N N N N N N N N N N ++- )4E4=D4 >BC>5B0;4B A>BB?A>58C &?4A0C8=64G?4=B4B )4E4=D4<0A68= !+<0A68= 0B43>=0E4A0644G270=64A0C4>5 0=3K 5>A !=2;D34B0 <>=C72>=CA81DC8>=5A><*C0A-0

  15. Slide 15: Disciplined cost management

    Disciplined cost management Operating expenses 1H24 vs 1H23 ($’000) For personal use only &=4 >55B *C0A-0;4 <?;>H44 $0A:4C8=6 +427=>;>6H >=BD;C8=6 &C74A &C74A8C4<B *C0A-0;4 &=4 >55B >?4A0C8=6 <>=C7B >?4A0C8=6 2>BCB 02@D8B8C8>= 2>BCB ;460;2>BCB >A?>A0C4 >?4A0C8=6 >?4A0C8=6 >?4A0C8=6 2>BCB 2>BCB 2>BCB

  16. Slide 16: Balance sheet strength

    Balance sheet strength (A?<;4/.9.;02@522A.@.A 202:/2? D6A5 For personal use only .0.@5/.9.;02 <3 :- : )** :<3B;1?.D;12/A0.=.06AF.@.A +% +% 202:/2? . . . - 6;A2?6:<?16;.?F16C612;1<3 0=@?23920A@. 3B99F2.?=.F<BA?.A6<<3 <3@A.ABA<?Famp;).A )" A52A<=2;1<3A52A.?42A21A<16C612;1 =.F<BA?.A6<?.;42 *" (+(( %*)) *

  17. Slide 17: Balance sheet strength underpinned by cash generation

    Balance sheet strength underpinned by cash generation ?220.@539<D <3 : : .@50<;C2?@6<;?.A6<<3 For personal use only *" #039;.)'&#$#+#'&/ /%-)-'#!2( %/1%#)!3).- ,.13)2!3).- %"2)3% )5)$%-$ -241!-#% (!1% 3(%1 +.2)-'#!2( 423.,%1 %-%1!+ )-3%1), 1.&.1,! 413(%1 1.&.1,! "!+!-#% .&!#04)1%$ $%5%+./,%-3 /!7,%-32

  18. Slide 18: Conclusion & FY24 Outlook

    For personal use only Conclusion & FY24 Outlook "D<1> )4BD;CB

  19. Slide 19: Successfully growing earnings and cash generation

    Successfully growing earnings and cash generation -&,% % ()+#&!*" #039;.% For personal use only /M/) /M/) /M/) !=C4A8< / / / / / / / / / / / / / / / / / / 8E834=3342;0A432?B / 0=3/ 8=2;D34B?4280;38E834=3B )45;42CBC8<8=68<?02CF74A4CA0340=3>C74A?0H01;4BF4A4</ <0B?0H<4=CBC>+74gt;CC4AH>A?>A0C8>=0A40F44:8=0A

  20. Slide 20: Key stats from $200m Powerball

    Lottery Retailing – Key stats from $200m Powerball Great result with room for improvement For personal use only Tickets sold New signups Ticket sales Tickets sold Signups within per minute (peak) 24 hours 804,965 82k +14% 1,509 per minute 57k vs $160m in Oct 2023 706,650 62k 1,283 per minute 47k Upt

  21. Slide 21: 1H24 report card and FY24 Outlook

    1H24 report card and FY24 Outlook FY24 Outlook Status (1H24) Commentary @ Marketing costs expected to be in the range of 1.5% to 2.0% of TTV (FY23: 1.3%), 1.4% For personal use only dependent on jackpots H #.?82A6;4@=2;16;39B2;021/F Lottery 7.08=<A@ Retailing* @ Final step up in TLC service fee1 to

  22. Slide 22: Jumbo's growth and evolution of mix

    Jumbo’s growth and evolution of mix Business mix Revenue, % For personal use only FY2023 Geographical mix International 19% FY2018 16% $118m 7% 81% Australia $118m Product mix $40m Non-TLC 100% 77% $118m Lottery Retailing SaaS1 Managed Services TLC - Australian centric - Australia and International

  23. Slide 23: Creating winning moments exclusively for Oz Lotteries Players

    Creating winning moments exclusively for Oz Lotteries Players multiple times a day For personal use only H Grown to more than 100k members since our launch in September 2023 H $425k in prizes in 1H24 H Free to join, exclusive to Oz Lotteries H $500 prize daily H $2,500 prize on Fridays H $75k - $100

  24. Slide 24: Questions

    For personal use only Questions

  25. Slide 25: Supplementary Information

    For personal use only Supplementary Information

  26. Slide 26: Active players provide the foundation for future growth

    Active players provide the foundation for future growth Canada For personal use only Active players who made a purchase in the 12-month period (FY15 – 1H24) United Kingdom Australia E;09B12@0<;A?6/BA6<;3?<:"<AA2?F'2A.696;4<;9F ;09B12@0<;A?6/BA6<;3?<:(..(.;1#.;.421(2?C602@ 8 8 8 8 8 : : : : : / / / /

  27. Slide 27: Lotteries have proven to be highly resilient to recessions

    Lotteries have proven to be highly resilient to recessions Australian lotteries sales over time ($bn) For personal use only B B B B "+)+99/54 "+)+99/54 % / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / !=BC0=CB A0F0<4B *>DA24DBCA0;80=0<1;8=6*C0C8BC82B+012>A?+$>CC4AHF4BC 58=0=280

  28. Slide 28: Significant growth potential from increasing online penetration

    Significant growth potential from increasing online penetration 20221 total internet revenues as a % of total lottery sales For personal use only .+!-$ #%+!-$ 23.-)! +.5%-)! 6%$%- 3!+7 %-,!1* 4-'!17 )-+!-$ -)3%$ !/!- %6 4231!+)! 1%%#% .33%17 %+')4, 8%#( 1!-#% ++)-.)2 4231)! .13( .13( )-'$., %!+!-$ 6

  29. Slide 29: Powerball price change

    Powerball price change (in line with expectations) Powerball RPPU1 for jackpots ≤ $20m ($) For personal use only '&&* ?.D@6G2 Powerball price change (May 23) + 20 cents price increase (+14.8%) C2?.42'&&*=?2=?60205.;42 + 30% increase in RPPU2 -1.6% decrease in tickets sold2 C2?.42'&&*=<@A=?60205.;42

  30. Slide 30: Harnessing Artificial Intelligence

    Harnessing Artificial Intelligence As a software company, Jumbo has always been an early adopter of new technology and has been conducting experiments with AI for several years Already in use In development For personal use only Marketing Development Customer Support Operations +625?/4-')./4+ +625?/

  31. Slide 31: Our blueprint for acquisitions

    Our blueprint for acquisitions # "# ! ! # For personal use only *(* !#(*#&%$ 1 2 3 ! " +)#% ))(#* (# #%%#$(#* (# @A./96@521/B@6;2@@ (64;6360.;A4?<DA5 D6A5=?<C2;A?.08 ?B;D.F/F92C2?.46;4 %=2?.A6;4.A@0.92 )F=60.99F J E ?20<?1<3 B:/<0<?2& 42;2?.A2@) ):B9A6=92 =2?3<?:.;02 A205;<9<4F.;1 I:=2?.;;B: 9<AA2?F

  32. Slide 32: Group 1H24 consolidated results

    Group 1H24 consolidated results %'8/'4)+ & & C C C C For personal use only ++- )4E4=D4 >BC>5B0;4B A>BB?A>58C &C74AA4E4=D4 G?4=B4B4G2; B70A4 10B43?0H<4=CB #2!(.&-# .#",3)#*/. *70A4 10B43?0H<4=CB 4?A4280C8>=0=30<>AC8B0C8>= !+ <>AC8B0C8>=>502@D8A438=C0=681;40BB4CB !+ %4C8=C4A4BCA4E4=D4 %'+ !=2><4C0G4G?

  33. Slide 33: Reconciliation to 1H24 reported earnings

    Reconciliation to 1H24 reported earnings %'8/'4)+ C C For personal use only !+ !+ %'+ %'+ '*2?B '* 2?B !=E4BC<4=C38B?>B0;2>BCB 2@D8B8C8>=2>BCB )4C4=C8>=?0H<4=CB &C74A +0G14=458C !+ D=34A;H8=6 !+ D=34A;H8=6 %'+ D=34A;H8=6 %'+ D=34A;H8=6 '* D=34A;H8=6 '* D=34A;H8=62?B '6241(+6#(6'46#: #40+0)5'4 *#4'#039;

  34. Slide 34: 1H24 Group result overview – like for like performance

    1H24 Group result overview – like for like performance For personal use only A>D? A>D? A>D? A>D? <>=C7B 4G2; )4?>AC43 *C0A-0;4 4G2; )4?>AC43 -0A80=24 )4?>AC43 *C0A-0;4 *C0A-0;4 *C0A-0;4 -0A80=24 4G2;D38=6 N N *C0A-0;4 N N N N ++- )4E4=D4 )4E4=D4<0A68= ,=34A;H8=6>?4A0C8=62>BCB ,=34A;H8=6!+ ,=34A;H8=6

  35. Slide 35: 1H24 result – segmental information

    1H24 result – segmental information 5::+8? '4'-+* 4:+89+-3+4: #''# $5:'2 "+:'/2/4- #+8</)+9 +2/3/4':/549 C C C C C For personal use only ++- A>D? +78A3 ?0ACH +>C0;B46<4=CB0;4BA4E4=D45A><4GC4A=0;2DBC><4AB !=C4AB46<4=CB0;4BA4E4=D4 +/(.#%)#*/.(#.-#1#*0# >BC>5B0;4B -+..,-+#039;/ <?;>H4414=458CB4G?4=B4 $0A:

  36. Slide 36: 1H24 Lottery Retailing

    1H24 Lottery Retailing %'8/'4)+ ++-N # For personal use only )4E4=D4N )4E4=D4<0A68= >BC>5B0;4B N &?4A0C8=64G?4=B4BN $0A:4C8=6 &C74A !+N '>F4A10;; *0CDA30H#>CC> 70A8C84B %D<14A>5902:?>CBL< &I#>CC> &C74A E4A0648E8B8>=902:?>CB>5L<< # '40:8E8B8>=902:?>C3DA8=6C7470;5H40A?4A8>3< =0 66A460C48E8B8>=902:?>CB

  37. Slide 37: 1H24 Managed Services

    1H24 Managed Services1 (local currency basis) 0C74AF4;;' *C0A-0;4 ' *CA834 -0A80=24 -0A80=24 -0A80=24 +!(!0--#*!3 JN JN JN JN N N For personal use only ++- A )4E4=D4 B >BC>5B0;4B A>BB?A>58C C &?4A0C8=64G?4=B4B )4C4=C8>=?0H<4=CB *"#-(3'*% )4E4=D4<0A68= ,=34A;H8=6!+<0A68= AK !=2;D34BJ:?A8I4A4B4AE45D=3

  38. Slide 38: Financial framework and P&L drivers

    Financial framework and P&L drivers For personal use only (DABD0=CC>C74)4B4;;4A6A44<4=CBF8C7+$30C43D6DBC 0MBC4??43 D?NB4AE8245448B?0H01;48=C74BD1B2A8?C8>=2>BC>5C74C82:4CB?DA270B430C / / /0=3 /0=3C74A405C4A !5C74 BD1B2A8?C8>=B4G2443 8=0=H0??;8201;458=0=280;H40AC74=0B4AE824>5 0??;84BC>C744G24BB0<>D=C

Jumbo Interactive — H1 2024 Earnings Presentation on 6ix