ASX:JIN
Jumbo Interactive Ltd
Investment Summary
The fund managers believe that Jumbo Interactive Ltd (JIN) continues to face challenges, particularly as 1H25 results were negatively affected by a weaker jackpot cycle following a significant $200 million Powerball in 2H24. Despite a decline in market share during this period, management has indicated a recovery in early 2H25 due to enhanced jackpot sequences and consistent customer engagement. The fund managers noted that the company has reaffirmed its FY25 guidance, highlighting price increases and marketing optimizations, along with subscription growth as factors that position JIN favorably. However, they also pointed out rising competition from foreign lotteries as a critical issue that requires navigation and is influenced by regulatory factors. Overall, in their opinion, while there are obstacles, there are also positive indicators for JIN's potential future performance.
Commentary From The Managers
Clime
28 Feb 2025
$11.39
- JIN was a detractor this month, impacted by weaker jackpot cycles after the strong $200 million Powerball in 2H24.
- Market share declined in 1H25, but management anticipates a recovery in early 2H25.
- Recovery supported by improved jackpot sequences and steady customer engagement.
- Management reaffirmed FY25 guidance amid the changing market conditions.
- Price increases, marketing optimisations, and subscription growth position JIN well for the future.
- Rising competition from foreign lotteries remains a key factor to navigate, subject to regulation.
- Clime continues to hold because of the anticipated recovery and strategic optimisations in place.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.