Jumbo Interactive reported a resilient FY25 with $145 million revenue and $69 million EBITDA despite subdued jackpot activity, while outlining a strategic push into SaaS, managed services, and prize draw markets in the UK and US.
- FY25 revenue of $145 million and EBITDA of $69 million despite fewer large jackpots
- Strategic focus on protecting Australian lottery market share and diversifying through SaaS and proprietary products
- Accelerated growth plans via acquisitions in UK and US prize draw sectors
- Updated capital management framework emphasizing dividends, share buy-backs, and disciplined acquisitions
- Early FY26 trading shows modest growth with ongoing marketing and product innovation investments
Strong Financial Performance Despite Jackpot Headwinds
Jumbo Interactive Limited has reported a robust financial performance for FY25, posting $145 million in revenue and $69 million in EBITDA. This result stands as the company’s second-best year, only trailing FY24, which benefited from record jackpot events including a $200 million Powerball in February 2024. The subdued jackpot environment in FY25, with no jackpots exceeding $100 million, presented a notable challenge, yet Jumbo maintained strong operational momentum.
Strategic Focus – Protecting Core and Expanding Horizons
Central to Jumbo’s strategy is safeguarding its dominant position in the Australian lottery market while diversifying revenue streams. The company is strengthening its Software as a Service (SaaS) offerings and managed services, which have shown promising growth, particularly in the UK and Canadian markets. Proprietary products and charity partnerships continue to gain traction, contributing to a growing share of total lottery retail turnover.Jumbo’s expansion into the prize draw market, especially in the UK and US, reflects a deliberate move to capture younger, digitally savvy customers. These markets offer substantial growth potential, with prize draws representing a significant and expanding segment. The company’s acquisitions in these regions are designed to accelerate this diversification and scale its portfolio beyond traditional lottery products.
Capital Management and Shareholder Returns
Jumbo updated its capital management framework to balance growth investments with shareholder returns. The company targets a dividend payout ratio of 30% to 50% of net profit after tax starting from the first half of FY26. Additionally, Jumbo continues an opportunistic on-market share buy-back program, having repurchased $11 million worth of shares at an average price of $12.30 as of June 2025. This disciplined approach aims to optimize capital allocation amid evolving market conditions.Sustainability and Corporate Responsibility
Beyond financials, Jumbo reaffirmed its commitment to sustainability and community engagement. Initiatives include carbon-neutral Australian operations, a responsible gambling framework, and significant charitable contributions exceeding $70,000. The company also highlighted its award-winning learning and development programs and efforts to enhance diversity and inclusion across its global workforce.Outlook and Early FY26 Trading
Early trading in FY26 shows modest growth, with total transaction value (TTV) and revenue up year-on-year across lottery retailing and SaaS segments. However, the company notes the ongoing uncertainty around jackpot frequency and size, which remain key drivers of revenue volatility. Jumbo is also awaiting outcomes from significant requests for proposals, such as Lotterywest, which could influence near-term growth trajectories.Overall, Jumbo Interactive’s FY25 results and strategic initiatives position it well to navigate the evolving lottery and prize draw landscape, balancing core market protection with ambitious diversification and growth plans.
Bottom Line?
Jumbo’s ability to sustain growth amid jackpot variability and execute on its diversification strategy will be critical as FY26 unfolds.
Questions in the middle?
- How will Jumbo’s acquisitions in the UK and US prize draw markets impact long-term profitability?
- What are the implications of the revised dividend policy for investor returns and capital allocation?
- How might jackpot frequency and size trends in FY26 influence Jumbo’s revenue and market share?