JUMBO SLOW IN GERMANY BUT TICKET SALES HIT A RECORD

Written on the 19 February 2015 by Jenna Rathbone

JUMBO SLOW IN GERMANY BUT TICKET SALES HIT A RECORD

LOTTERY business Jumbo Interactive Limited (ASX:JIN) has reported record ticket sales of $66 million for the December half year an increase of 21 per cent from the same time last year and 28 per cent up on the preceding six months.

This comes despite slow progress in Germany in the first six months of the company's nationwide launch.

JIN says a number of factors have contributed to sluggish development in Germany, including minimal differentiation in the JumboLotto app and website, limited interactive marketing channels and lack of legislation and enforcement to curb offshore unlicensed websites selling.

"Jumbo has reduced spending in Germany to allow time for changes to take effect and provide a foundation for a more sustainable operation," says JIN CEO and founder Mike Veverka.

"The fundamental attractiveness of the German market remains and I am confident that Jumbo can achieve its strategic goal of diversified earnings from multiple jurisdictions."

The $11 billion German lottery market is almost twice the size of the Australian market, however internet use is minimal with penetration around 1 per cent compared to 10 per cent in Australia.

JIN also has a presence in the US and Mexico.

JIN says strong sales in December helped lift pre-tax net profit to $800,000 and a lower than expected bottom-line loss of $23,000.

The number of customer accounts on OzLotteries.com.au has grown from 1.64 million to 1.82 million over the 12 months to December 31, while a steady 1.5c dividend has been declared.

Following this growth, the company is planning a significant rebuild, rebrand and relaunch of the company's app and website and says it will provide capabilities for new products integrated into the lottery game play process.

"With the continuing rise in popularity of the OzLotteries app and website, we have increased our investment in technology to further escalate growth through efficiency and product rather than just be proportional to marketing spend and optimisation," says Veverka.

JIN sold its first lottery ticket on the internet in 2000 and has since been listed on German stock exchanges in Frankfurt, Berlin and Stuttgart.


Author: Jenna Rathbone
About: Jenna Rathbone is a Queensland-based journalist who writes on a range of issues including business and property affairs and social issues.
Connect via: Twitter

Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter