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.

European Gaming Congress 2024 (Warsaw, Poland)

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

Regulating the Game Announces Dr Bo Bernhard as 2025 Conference Speaker

Published

1 week ago

September 3, 2024

Niji Narayan

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Reading Time: 2 minutes

Leading gambling law and regulation conference Regulating the Game has announced Dr Bo Bernhard, Vice President of Economic Development at the University of Nevada Las Vegas, as a headline speaker at its 2025 edition, to be held in Sydney from 10 to 13 March.

A well-known industry figure, Bernhard is also a fifth-generation Nevadan whose global work has taken him from the glitz of Las Vegas to South Africa, Europe, Japan, Singapore and beyond. A Harvard graduate with a double major in sociology and psychology, his groundbreaking research on the socio-economic impacts of the Las Vegas Strip set the stage for a distinguished international career.

Paul Newson, Principal at event organizer Vanguard Overwatch, said: “Having Dr Bo Bernhard share his insights at Regulating the Game 2025 will be electrifying. His unique global perspective is sure to enlighten, provoke thinking and inspire. This conference continues to set the bar high with unmatched speaker line-ups and content that tackles the sector’s most pressing issues.”

By 30, Dr Bernhard had delivered key research addresses on six continents. He later took on the role of Executive Director at the UNLV International Gaming Institute, where he expanded the organization to include four centers of excellence. In 2021, he became UNLV’s Vice President of Economic Development, spearheading projects at the Harry Reid Research and Technology Park, Black Fire Innovation hub and UNLV Incubator.

“We find ourselves at a fascinating moment in the global economy, as industries like gaming, tourism, sports, and entertainment are blending, growing, and converging like never before,” said Dr Bernhard.

“This conference convenes the leading thinkers in gaming and adjacent sectors, and never has it been more timely or more important to gather leading experts in an effort to tackle some of the most challenging issues in our fast-developing world.”

The Regulating the Game conference is a flagship event that bridges the gap between regulators, industry professionals and stakeholders. The conference is dedicated to introducing expert content, inspiring discussion and debate about policy and sector issues, and driving innovation to support efficient and effective gambling regulation.

Now in its fifth year, Regulating the Game continues to attract speakers and attendees from around the world, solidifying its status as a pivotal event for those shaping the future of the industry.

The post Regulating the Game Announces Dr Bo Bernhard as 2025 Conference Speaker appeared first on European Gaming Industry News.

Australia

ACMA: Young Australians Embrace National Online Gambling Self-Exclusion Register

Published

2 weeks ago

August 30, 2024

Niji Narayan

acma:-young-australians-embrace-national-online-gambling-self-exclusion-register

Reading Time: < 1 minute

More than 28,000 Australians have made the decision to self-exclude from all licensed online and phone wagering services since BetStop – The National Self-Exclusion Register was launched by the Australian Communications and Media Authority (ACMA) in August 2023.

The register allows people to self-exclude for a minimum of three months up to a lifetime and of the 28,000 registrants who to date have chosen to self-exclude:

• Almost half were aged 30 and under, and around 80% were aged 40 and under.
• Around 40% have decided to self-exclude for life.
• Fewer than 20% of registrants chose the minimum period of three months.
• More than 14% have already extended or reactivated their self-exclusion period.

ACMA Chair Nerida O’Loughlin said that the register’s first year of operation has shown that Australians want help in managing their gambling behaviour.

“Online gambling can cause a great deal of harm to individuals, their families and friends, so it’s encouraging that so many people have decided to take the step and register to self-exclude.

‘Younger Australians in particular are making early decisions about the role that online gambling will play in their lives.

“Many people are also choosing to nominate someone to support them. Stopping online gambling can be a difficult decision to make – having someone to support you can make the decision much easier.

“And many people are committing to long-term change, with a high percentage of people choosing to exclude for life,” Ms O’Loughlin said.

Australians can register to self-exclude from online and phone wagering at www.betstop.gov.au. All you need is access to your phone, your email address and an identity document such as a driver’s licence, Medicare card or passport. Registering is quick and easy – with most people able to register in less than 5 minutes.

The post ACMA: Young Australians Embrace National Online Gambling Self-Exclusion Register appeared first on European Gaming Industry News.

Australia

Golden Matrix Enters Into Definitive Agreement to Acquire a Controlling Interest in Australian-Based Classics for a Cause

Published

3 weeks ago

August 20, 2024

GamingAmericas.com

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Golden Matrix Group, Inc. (Nasdaq: GMGI) (“GMGI” or the “Company”), a developer and licensor of online gaming platforms, systems and gaming content, today announced that it has entered into a definitive agreement to acquire an indirect 80% controlling interest in Classics for a Cause Pty Ltd (“CFAC”), a leading independent online discount platform in Australia.

This strategic acquisition marks GMGI’s entry into the consumer loyalty and rewards industry, complementing its existing operations in the gaming and sports betting sectors and solidifying its position as a premier tournament operator. Moreover, it provides a significant opportunity to scale CFAC’s business and expand the firm’s operations globally.

CFAC operates a well-established business-to-consumer (B2C) platform that offers paid members access to a wide range of discounts from retailers across Australia. The company rewards its members with free entries into promotional giveaways, which feature luxury, high-end American and Australian classic cars, caravans and campers as well as cash and vacation giveaways.

Business Highlights:

CFAC generated over $10 million in revenue and more than $1.9 million in operating profit before tax* for the 12-month fiscal year ending June 30, 2024.
CFAC has generated considerable free cash flow over the last two fiscal years.
The company boasts a social media following exceeding 50,000 and a customer base of more than 300,000, with over 10,000 active monthly subscribers.
Recurring monthly subscribers contribute over 30% of CFAC’s total revenue.

*Net operating income before tax calculated for the 12-month period ending June 30th 2024. Financials presented in Australian Dollars and written on a cash basis. With cash basis accounting, revenue and expenses are recorded when cash is received or paid out. Post transaction financials will be presented in terms of GAAP and presented on an accrual basis.

Under the terms of the agreement, GMGI will acquire its 80% stake in the entity which owns CFAC at a purchase price representing a multiple of roughly 5x profits before tax, declared for fiscal year ending June 30th 2024, totalling approximately $8.4 million inclusive of the earnout component. Of this amount, 70% will be paid in cash, with the remaining 30% settled through the issuance of restricted shares of GMGI common stock. The agreement includes provisions for a holdback amount and an earnout, contingent upon CFAC meeting certain post-closing profit targets. Additionally, GMGI will inherit a call option to acquire the remaining 20% minority interest.

The acquisition is subject to customary closing conditions, expected to be fulfilled within the next several days, with an effective date of August 1, 2024.

Commenting on the acquisition, Brian Goodman, CEO of Golden Matrix, said, “We are thrilled to proceed with this acquisition as it aligns perfectly with our strategy of acquiring profitable and accretive businesses. Our previous acquisition of RKings Competitions has been a phenomenal success, significantly contributing to our revenues and profits, and we anticipate similar results with CFAC. CFAC will provide a strong foundation to build on, as was the case with RKings, and we expect this acquisition will not only enhance our revenue and cash flow but will also add to our bottom-line profitability. We are confident in our ability to scale CFAC, implement cost efficiencies, upgrade its technology and further strengthen its free cash flow.”

Thomas Bailey, founder of CFAC, added, “We are incredibly excited to join forces with GMGI and contribute to their ongoing success. This partnership offers a significant opportunity to expand CFAC into new markets and elevate the company to new heights.”

Thomas Bailey will continue in an executive role with CFAC, where he will oversee the company’s growth and lead the roadmap for its planned expansion into the U.S. Tom co-founded CFAC in 2019 to support Australian veteran charity programs. Over the past decade, he has played a pivotal role in successfully establishing over 14 start-ups and has a strong background in marketing and implementing growth strategies.

According to Research and Markets, the consumer loyalty and rewards market will continue to grow and is forecasted to record a CAGR of 9.5% from 2024-2028, as well as an increase from $3.64 billion in 2023 to $5.79 billion by 2028.

For full details of the purchase agreement and related terms, please refer to the Current Report on Form 8-K filed today with the Securities and Exchange Commission.