Jumbo Interactive’s preliminary 1H26 results reveal robust double-digit growth driven by SaaS and Managed Services, despite a quieter jackpot landscape. The recent acquisitions in the UK and US add momentum but introduce new accounting complexities.
- Group Total Transaction Value (TTV) up 15.7% to $524.7 million
- Underlying EBITDA rises 22.6% to $37.5 million despite subdued jackpot environment
- Strong growth in SaaS segment (+9.9%) and Managed Services
- Dream Car Giveaways UK and Dream Giveaway USA acquisitions contribute positively
- Dividend payout ratio revised to 30-50% of statutory NPAT to support debt reduction
Robust Growth Despite Jackpot Drought
Jumbo Interactive Limited (ASX, JIN) has delivered a strong preliminary performance for the first half of 2026, reporting a 15.7% increase in Group Total Transaction Value (TTV) to $524.7 million. This growth is particularly notable given the subdued jackpot environment, with fewer large jackpots and a 32.8% decline in total prize value compared to the previous corresponding period.
The company’s Lottery Retailing segment remained resilient, maintaining broadly flat TTV despite the softer jackpot landscape. This stability was supported by continued momentum in charity and proprietary lottery products, which helped offset the impact of fewer high-value jackpots.
SaaS and Managed Services Drive Momentum
Jumbo’s SaaS segment, which provides technology platforms to lottery operators, recorded a 9.9% increase in TTV, or 12.4% growth excluding Lotterywest. This performance underscores the growing demand for digital lottery solutions, even as traditional jackpot sizes wane.
The Managed Services division also showed strong progress, with good momentum in Canada and disciplined execution in the UK. These areas are becoming increasingly important as Jumbo expands its footprint beyond Australia.
Impact of Strategic Acquisitions
In October 2025, Jumbo completed acquisitions of Dream Car Giveaways UK and Dream Giveaway USA, which are now contributing positively to the group’s results. These acquisitions are reflected in a new segment called ‘Dream Giveaways’ and have introduced a provisional $2.2 million non-cash amortisation expense related to acquired intangible assets.
While these acquisitions add scale and diversify Jumbo’s revenue streams, they also bring accounting complexities that investors should watch closely as the company finalises its audited results.
Dividend Policy Adjusted for Balance Sheet Strength
Following the acquisitions and the associated increase in debt, Jumbo’s Board has revised its dividend payout ratio to a range of 30% to 50% of statutory Group NPAT. This adjustment aims to maintain balance sheet strength and support debt reduction, positioning the company for sustainable long-term shareholder returns.
The interim dividend for 1H26 will be determined after the final audited results are released on 25 February 2026.
Overall, Jumbo Interactive’s preliminary results paint a picture of a company successfully navigating a challenging jackpot environment while leveraging technology and strategic acquisitions to fuel growth.
Bottom Line?
Jumbo’s next steps will hinge on integrating acquisitions smoothly and managing debt while sustaining growth momentum.
Questions in the middle?
- How will the amortisation of acquired intangible assets affect Jumbo’s future earnings?
- What is the outlook for jackpot sizes and their impact on Jumbo’s Lottery Retailing segment?
- How effectively can Jumbo leverage its SaaS and Managed Services growth internationally?