How Did Jumbo Interactive Sustain Growth Despite Softer Jackpots in FY25?

FY25 Performance Overview

Jumbo Interactive Limited has reported its FY25 results, delivering a strong performance that ranks as the company’s second-best year, trailing only FY24 which benefited from record-breaking jackpots. Despite a 5% decline in total transaction value (TTV) to $996 million and a 9% drop in revenue to $145.3 million, Jumbo demonstrated resilience through disciplined cost management and strategic focus across its core segments.

The company’s underlying EBITDA fell 11% to $68.3 million, reflecting the subdued jackpot environment that impacted player engagement and spend. However, Jumbo’s EBITDA margin remained robust at 47%, comfortably within guidance ranges, underscoring operational efficiency amid challenging market conditions.

Segment Highlights – SaaS and Lottery Retailing

The Software-as-a-Service (SaaS) segment was a standout, achieving record transaction values exceeding $250 million and revenue surpassing $10 million. This growth was driven by scaling partnerships and strong organic momentum, with multiple partners reporting their best-ever results. SaaS now commands a 24% share of Australia’s lottery fundraising market and is gaining traction internationally, particularly in the UK.

Lottery Retailing, Jumbo’s traditional core business, faced softer jackpots but maintained strong player engagement and loyalty. The segment saw a 16.7% decline in TTV to $457 million but improved revenue margins due to a favorable product mix and digital penetration reaching 41%. Jumbo continues to diversify its product offerings, including proprietary and charity lotteries, which are gaining momentum.

Capital Management and Shareholder Returns

Jumbo’s balance sheet remains solid with $65.6 million in available funds and substantial liquidity of $115.6 million, including undrawn debt facilities. The company declared a fully franked total dividend of 54.5 cents per share, consistent with FY24, reflecting a payout ratio at the top end of its targeted 65% to 85% range. Additionally, Jumbo is continuing its on-market share buy-back program, having repurchased $11 million worth of shares at an average price of $12.30 as of June 2025.

Innovation and Growth Outlook

Looking ahead to FY26, Jumbo is optimistic about growth prospects. The company plans to leverage pricing changes, including a 20-cent subscription price increase for Powerball and a 14.3% price increase for Saturday Lotto, both effective in 2025. These adjustments, combined with ongoing product diversification and marketing initiatives, are expected to support revenue margin expansion and underlying EBITDA growth of 10% to 15% in Australia.

Jumbo is also advancing its AI capabilities, having launched an interactive AI-powered annual report and developing AI tools to enhance lottery operations, fraud detection, and software development. This technological edge positions Jumbo well for sustained innovation and competitive advantage in the digital lottery space.

Internationally, the Managed Services segment, operating in the UK and Canada, is building momentum with new customer wins and expanded services, contributing to an EBITDA margin ahead of guidance at 26.7%. The company remains focused on disciplined acquisitions to accelerate growth while maintaining capital flexibility.