Leading internet lottery business, Jumbo Interactive Limited (ASX: JIN) uses latest technology to craft an engaging and entertaining purchase experience for its customers. The company’s flagship website www.ozlotteries.com has delivered a consistent 20 percent compound annual growth rate over 7 years to 30 June 2018, absorbing the natural fluctuations in jackpots.
Today, the company has announced a fully franked special dividend of 8 cents per ordinary share as part of it’ ongoing capital management strategy. After the payment of this special dividend for future capital management considerations, the company is going to have around $11 million in retained earnings and $10 million in franking credits. It is expected that the cash reserves available following this special dividend will be in the region of $53 million for any potential acquisitions, expansion opportunities and/or a further special dividend in the future.
The special dividend is having an Ex-dividend date of 14 May 2019 and Record date of 15 May 2019. The special dividend is scheduled to be paid on 22 May 2019.
Based on the FY19 NPAT guidance of $24.2 million provided by the Company on 15 February 2019 and the unchanged Dividend policy of 85% of NPAT, a final dividend in the region of 18c per ordinary share is expected for FY2019.
In the first of FY 2019, the reported growth in its Total Transaction Value (TTV), revenue and profit compared to the previous corresponding period (pcp), primarily driven by the improved customer engagement together with higher large jackpot activity leading to increased customer activity and customer spend.
The company reported a growth of 66% in its TTV which resulted in an increase in its revenue, albeit at a lower percentage due to a reduced Revenue margin of 20.6 percent (2017: 21.7 percent). The reduction of 110 basis points (bps) in Revenue margin is mainly driven by a change in product mix largely due to the jackpot activity per product.
Jumbo has a stable leadership team that has amassed unique digital experience in the world lottery industry. The company’s Chief Executive Officer & Executive Director Mr. Mike Veverka has a proven track record in business and computing, establishing several successful startups to meet new consumer demands for online product, Mike plays a pivotal role in the growth strategy, innovation and promotion of Jumbo.
The Company’s stock is trading at a price of $16.000, down by 0.312% during the day’s trade with a market capitalisation of ~$997.09 Million as on 8 May 2019 (AEST 3:35 PM). The counter opened the day at $15.900 and reached the day’s high of $16.300 and touched a day’s low of $15.660 with a daily volume of ~426,476. The stock has provided a year till date return of 124.32% & also posted returns of 119.23%, 95.48% & 4.59% over the past six months, three & one-month period respectively. It had a 52-week high price of $17.820 and touched 52 weeks low of $3.950, with an average volume of ~349,213.
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