Australia

Jumbo Interactive Announces FY2020 Results

Published

4 years ago

August 27, 2020

Reading Time: 3 minutes

Australian online lottery retailer Jumbo Interactive has announced its FY2020 results. The company has reported an 8.7% year-on-year growth in revenue and is now targeting growth in markets such as the UK, US and Canada as it aims to increase sales to AU$1bn. Total sales for the 12 months to 30 June amounted to AU$348.6m ($251.0m), with revenue rising from $65.2m to $71.2m.

Its core Australia Lotteries saw revenue increase 6.9% year-on-year to $68.7m, aided by a $260,000 contribution from its burgeoning software-as-a-service business, as well as large jackpots driving customer activity.

In terms of spending for the year, costs of sales were up 5.1% to $5.3m, while administrative expenses also increased 46.5% to $23.6m. However, Jumbo was able to reduce marketing costs by 19.9% to $5.6m, while occupancy expenses were cut by 86.0% to $104,000 for the year.

After taking into account $222,000 in finance costs and $176,000 in fair value movement on financial liabilities, this left Jumbo with a $37.4m profit before tax, down slightly from $38.2m at the end of its 2019 financial year.

Jumbo paid $11.5m in tax during the year, and after also including a $676,000 negative impact from foreign currency translation, this meant comprehensive profit for the year amounted to $25.2m, down 4.6% from $26.4m in 2019. However, in terms of underlying earnings before interest, tax, depreciation and amortisation, this increased by 7.7% to $43.2m.

“The online lottery industry has experienced further growth and this is expected to continue, especially as we broaden the charity lottery tickets we are now selling through our Powered by Jumbo software, which we feel will not only assist our profitability but also the deserving charities we are focusing on. We have often been asked if the Covid-19 pandemic has had an effect on our operation. With the experience of our major shareholder and CEO Mike Veverka and his very skilled staff, we have been able to continue to work both within the office and from the staffs’ respective homes,” David Barwick, chairman of Jumbo Interactive, said.

Veverka said that with online sales of lottery tickets accounting for 28% of Australian sales, the industry “clearly has a lot of growth ahead.”

“Lotteries are perfect for the internet and customers enjoy a top quality experience whether they play on OzLottries.com or another lottery using the Jumbo platform. Continual innovation is driving the customer experience even higher and is ensuring lotteries continue to remain popular into the future.”

Veverka also highlighted Jumbo signing a long-term extension to its reseller agreement with Australian lotteries and gaming operator Tabcorp, saying this will help to support its growth plans moving forward.

“The recent 10-year agreement with Tabcorp is an important milestone as it gives Jumbo certainty and the ability to plan long term. The next 10 years will be exciting as the internet share of ticket sales race up as players, young and old, enjoy the experience of playing online,” he said.

“From humble beginnings with a single computer in 1995, Jumbo has navigated many challenges and is ready for the growth that lies ahead. Our staff and partners over the years deserve enormous credit for this growth due to their efforts and trust in the vision to grow through technology,” he added.

Jumbo’s international lottery advisor Richard Bateson said that the retailer has identified opportunities for its iLottery and iRetailer solutions in the US, as more states move lotteries online.

“The iLottery proposition provides lotteries with an integrated digital lottery channel that is more efficient and effective than its industry competitors. The iRetailer proposition provides lotteries with a standalone digital channel that is self-sufficient and does not require operating cost or marketing budget to be diverted from the lottery’s main operations,” Bateson said.

“Once there is an established foothold in Canada, management believes the model can be exported to other parts of the North American region, using the expertise of the local market in adjacent markets. The international ambition is to drive sustainable businesses in the UK, the US and Canada that will be used as a beachhead in each region to grow into other markets and sectors,” Bateson added.

Australia

ACMA Reveals Illegal Gambling Crackdown Results

Published

2 days ago

April 22, 2024

Niji Narayan

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Reading Time: 2 minutes

The Australian Communications and Media Authority (ACMA) revealed the outcome of a crackdown on illegal online gambling services operating around the time of the 2023 FIFA Women’s World Cup.

The report published shows that 200 offshore services were reviewed in the lead-up to and during the event. Of those services, 21 were investigated as they appeared to be directly targeting Australians. As a result, 18 services were found to be operating in breach of the Interactive Gambling Act 2001.

Following notification of the ACMA’s findings, three of those services withdrew from the Australian market, while the remaining 15 services had their websites blocked by internet service providers at the request of the ACMA.

ACMA authority member and online gambling lead Carolyn Lidgerwood said the sites were unlicensed to provide wagering services in Australia and in some cases also offered interactive gambling services such as online casinos and slots or online in-play betting, which are all banned in Australia.

“Illegal gambling operations often take advantage of high-profile sporting events to push their services onto fans. These sites also offer none of the consumer protections that apply to licensed wagering services in Australia. Using these sites is more than a gamble as you have no rights and even if you win, you may never see the money,” Ms Lidgerwood said.

Since 2019, the ACMA has been asking internet service providers to block gambling websites found to be operating in breach of Australian interactive gambling laws. Over that time, more than 900 illegal gambling and affiliate websites have been blocked.

More than 220 illegal services have also pulled out of the Australian market since the ACMA started enforcing illegal offshore gambling rules.

Minimising gambling harm is a current ACMA compliance priority and Australians can check on the ACMA’s online register to see if a wagering service is licensed to operate in Australia.

More information about online gambling is available on the ACMA’s website, including information on how to protect yourself from illegal gambling operators and instructions on how to make a complaint about an illegal site.

The post ACMA Reveals Illegal Gambling Crackdown Results appeared first on European Gaming Industry News.

Australia

SkyCity Appoints Jason Walbridge as Chief Executive Officer

Published

6 days ago

April 18, 2024

Niji Narayan

skycity-appoints-jason-walbridge-as-chief-executive-officer

Reading Time: 2 minutes

SkyCity Entertainment Group Limited has appointed Jason Walbridge as its new Chief Executive Officer.

Jason has more than two decades of senior executive public company experience in the global land-based and online gaming industries. He is currently a Strategic Advisor to global gaming and technology company Aristocrat Leisure Limited on its proposed acquisition of NeoGames S.A, and Executive Chairman of National Entertainment Network LLC, the largest amusement route operator in the US. He has been appointed to the role after an extensive international search.

SkyCity Board Chair Julian Cook said: “The Board is delighted to announce Jason’s appointment as CEO of SkyCity, and we are looking forward to the valuable contribution Jason will make to the business. Jason has extensive global experience in the land-based and online gaming industries, which will position him well to lead SkyCity through its next phases.”

Mr Walbridge said: “It will be a privilege to lead SkyCity, and I am excited to be joining the business at this time as SkyCity looks to pursue the many opportunities ahead of it.”

Mr Walbridge is expected to start in early July 2024, following his move back to New Zealand.

Prior to his current roles, Mr Walbridge held roles with the online gaming supplier NYX Gaming Group Limited and its acquirer Light & Wonder Inc, and before that he spent 18 years with Aristocrat Leisure Limited where he held executive leadership roles in New Zealand and the US. Previously, he held senior roles within consulting, including with Ernst & Young, and was an Officer in the New Zealand Defence Force. Mr Walbridge holds an MBA in International Management from the Auckland Institute of Studies.

Mr Cook confirmed that Callum Mallett will continue as Interim Chief Executive Officer until Mr Walbridge’s commencement date.

“I’d like to thank Callum for his continued leadership and his support during this period,” Mr Cook said.

The post SkyCity Appoints Jason Walbridge as Chief Executive Officer appeared first on European Gaming Industry News.

Australia

VGCCC Fines BlueBet AU$50,000 for Gambling Advertising Breaches

Published

7 days ago

April 17, 2024

Niji Narayan

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Reading Time: < 1 minute

BlueBet has been fined AU$50,000 by the Victorian Gambling and Casino Control Commission (VGCCC) for breaching gambling advertising regulations.

The company was found guilty of 43 charges related to displaying gambling advertisements on or above public roads, contravening the Gambling Regulation Act 2003.

The charges stemmed from an investigation initiated by VGCCC, following a complaint from a member of the public. The breaches occurred over a two-week period in August and September 2022, with BlueBet’s gambling advertisements appearing on digital billboards at various locations, including Point Cook, Laverton, Rockbank and Ravenhall.

Magistrate Greg Thomas, overseeing the case, expressed scepticism about BlueBet’s defence that it was unaware of the breaches, given the strategic placement of the billboards to target males aged 15-54 years old. While no conviction was recorded, Magistrate Thomas noted the high degree of negligence exhibited by BlueBet.

VGCCC CEO Annette Kimmitt AM said: “Gambling advertising has no place on public roads where it is readily visible to children and other vulnerable groups. These places are especially difficult to avoid as part of day-to-day activities. This decision sends a clear message to wagering providers that flout these protections for our community.”

Although Magistrate Thomas considered imposing a higher fine and recording a conviction, he took into account BlueBet’s guilty plea, cooperation with VGCCC and measures taken to prevent future breaches. BlueBet has implemented changes to prevent similar incidents and has cooperated with VGCCC throughout the process.

The post VGCCC Fines BlueBet AU$50,000 for Gambling Advertising Breaches appeared first on European Gaming Industry News.