Jumbo Interactive Ltd (ASX:JIN, OTC:JBINF) has delivered a robust first-half result, posting a 22.6% jump in underlying group EBITDA to $37.5 million despite a notably quiet jackpot season in Australia — and the company has wasted no time upgrading its full-year guidance off the back of outperforming international acquisitions.
“Integration of our recent acquisitions in the UK and USA have progressed well with the UK in particular exceeding our expectations, leading to an upgrade in our outlook for that business. Canada is another highlight which has performed ahead of expectations. The resilient performance of the Australian Lottery Retailing business was highlighted by achieving the same level of ticket sales as the prior comparative period, despite a 13% decline in the average value of large jackpots. In this half, approximately 50% of Group EBITDA was derived outside of the Australian Lottery Retailing business,” Jumbo managing director, CEO and founder Mike Veverka said.
The numbers
Group total transaction value (TTV) climbed 15.6% to $524 million for the six months to 31 December 2025, while group revenue surged 29.0% to $85.3 million. Underlying NPAT rose 14.7% to $19.9 million, with underlying NPATA — which adds back amortisation of acquired intangibles — up 22.6% to $22.8 million.
The result is particularly impressive given the headwinds facing the Australian lottery market. There were just 10 large Powerball and Oz Lotto jackpots in the period, compared with 13 in the prior corresponding period, with total prize value collapsing 32.8% to $410 million. Critically, there were no jackpots exceeding $100 million — a key driver of discretionary ticket buying — against two such events in 1H25.
Australia holds firm
Despite those conditions, the domestic Lottery Retailing business proved resilient. TTV was broadly flat year-on-year and revenue actually grew 5.5%, as the company leaned into higher-margin charity and proprietary products to lift its revenue margin to 24.8% from 23.4%. Australian underlying EBITDA dipped only 3.4% to $27.0 million, holding within the company's guided 46%–50% EBITDA margin band at 47.2%.
The SaaS segment — which licences Jumbo's digital lottery platform to government and charity operators — continued to build momentum, with TTV up 9.9% overall and 12.4% excluding Lotterywest, alongside 22.6% revenue growth.
Offshore businesses steal the show
The standout story of the half was the international division. Managed Services — which provides lottery management and fulfilment services to charities across the UK and Canada — lifted underlying EBITDA 51.3% to $4.1 million.
Then there are the newly acquired Dream Giveaways businesses. Jumbo completed the acquisitions of Dream Car Giveaways UK (DCG UK) and Dream Giveaway USA (DG USA) in October 2025, and even accounting for only a partial-period contribution (2.5 months for DCG UK, two months for DG USA), the segment added $6.5 million in underlying EBITDA. DCG UK is already running ahead of expectations.
Guidance upgraded
The strength of the offshore performance has prompted Jumbo to lift its FY26 outlook in two key areas. DCG UK's full-year underlying EBITDA contribution is now expected to land between £8.0 million and £8.3 million, up from the previous range of £7.0 million to £7.3 million.
Meanwhile, Canadian business Stride is now forecast to deliver underlying EBITDA growth of 20%–25% for the full year, a material step up from the earlier guidance of 5%–10%.
Dividend and buyback
Shareholders will receive a fully franked interim dividend of 12.0 cents per share, representing a payout ratio of 49.2% — sitting at the top end of the board's revised 30%–50% target range. The board adjusted its payout policy following the debt taken on to fund the UK and US acquisitions, balancing returns to shareholders with balance sheet discipline and debt reduction. The on-market share buyback program, which has seen $11.4 million in shares repurchased at an average price of $12.25, will continue on an opportunistic basis.