Jumbo Interactive: You make your own luck

About the author:

Author name:

By Alexander Mees

Job title:

Co-Head of Research and Senior Analyst

Date posted:

05 May 2023, 7:30 AM

Sectors Covered:

Gaming and Retail

• We have increased our EBITDA estimate for FY24 by 8% to $79m following Jumbo Interactive’s (ASX:JIN) announcement that it will increase the commission it charges on digital lottery tickets later this month, a move that is expected to add $12m to EBITDA.
• A poor run of large Powerball and Oz Lotto jackpots in recent months, as well as indications that the structural growth in digital penetration may have temporarily slowed, causes us to lower our FY23 EBITDA estimate by 7% to $59m.
• Shares in JIN have underperformed as the market took note of the notable absence of large jackpots. We have regarded this as an opportunity to buy into the stock as jackpot sequencing is both out of JIN’s control and likely to normalise in time. The news around pricing adds further conviction to our positive call.

Find out more

If you would like more information, please contact your adviser or nearest Morgans office. 

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.