Today on April 2, 2019, Jumbo Interactive Limited’s (ASX: JIN) shares surged by ~12%, extending its recent upside rally. The shares of JIN have been on an upward rally in the past couple of months. The share price has risen by 73.32%, 82.79%, and 24.58% in the past six months, three months and one month, respectively. The upside rally in share price might be attributed to its decent financial position along with the latest news surrounding the company.
Jumbo Interactive recently released an update announced by S&P Dow Jones about Quarterly Rebalance of the S&P/ASX indices for March 2019. As per the announcement, ‘JIN’ has been added into S&P/ASX 300 index with the open of trading effective from March 18, 2019.
In another update, JIN announced the change in its director’s interest, where Mike Veverka has an indirect interest in the company. He disposed of 510,770 ordinary shares, while exercised his 750,000 options to acquire 750,000 shares. In the process, $2,625,000 cash was paid, and $5,672,266 cash was received. After the transaction, Mr. Veverka held total 9,591,932 shares and 250,000 options.
The company also announced about its notice to the ASX under section 708A(5)(e) of the Corporations Act 2001, where it issued an additional 500,000 fully paid ordinary shares following the exercise of options on March 8, 2019. The options were exercised at $3.5 with expiration on November 15, 2022, taking the considerable amount to $1,750,000.
In its half-yearly result, it reported an increase in its total Transaction Value (“TTV”) by ~66% pcp to $147.8 Mn. Its revenue increased by ~58% pcp to $30.5 Mn. It NPAT attributable to the JIN members increased by ~140% pcp to $12.7 million. Its EBITDA increased by ~112% pcp to $19.1 million. The positive result can be attributed to improved customer engagement, higher jackpot activity, and effective cost control. Owing to the profitable half year period, the Board of Directors declared a fully franked interim dividend of 15 cps with payment date on March 22, 2019, and record date on March 8, 2019. However, the Dividend Reinvestment Plan (DRP) will remain suspended for this interim dividend.
As per key performance indicator, the company witnessed an increase in its new accounts from 103,912 in half year ending December 2017 to 199,410 in half-year ending December 2018. The number of active customers increased from 389,510 in 12 months period ending December 2017 to 576,144 (12 months) in December 2018.
The company’s guidance for TTV for FY19 stands at about $296.4 million as compared to $183.1 million (actual) in FY18. Its revenue guidance stands at $60.8 million for FY19 as compared to $39.8 million (actual) in FY18. Its NPAT (attributable to shareholders) guidance stands at $24.2 million as compared to $12.1 million (actual) in FY18. Its EBITDA guidance stands at $37 million for FY19 as compared to $19.4 million in FY18.
At market close on April 2, 2019, the stock of Jumbo Interactive was trading at $15.09, up 12.78% with the market capitalization of $827.2 million. Its current PE multiple is at 38.88x, and its last EPS was noted at 0.344 AUD. Its annual dividend yield is noted at 1.94%. Today, it made day’s high at $15.4 and day’s low at $14.1, with a daily volume of 585,848. Its 52 weeks high was at $15.4 and 52 weeks low at $3.885 with an average volume of 263,671. Its absolute return for five years, one year and six months are 701.09%, 232.65%, and 73.32%, respectively.