Is Jumbo going the way of the wayside?
Jumbo Interactive (ASX: JIN) has fallen roughly 33% since the start of October from a high of $27.92 in October to currently $18.170. But is this the end for Jumbo?
Online Lottery ticket sales in Australia account for ~18% of all tickets sold. Jumbo’s platform is highly scalable and will in the opinion of PROPHET Invest become the gold standard of online ticket sales throughout. Jumbo continues their push into UK territory earlier this month announcing the strategic acquisition of Gatherwell Pty.
FY2020 We Think YES!! Jumbo will continue delivering on its promise of $1billion lottery tickets through its platform by 2025.
Rumours surrounding TABCORP whom owns ~10% of the shares on market of JIN by the way, starting swirling that they were thinking of limiting the ticket sales of Powerball through the Jumbo’s platform. This has not been confirmed by management and it would not be in the best interest of TABCORP.
Considering these factors, Jumbo advises that EBITDA is expected to be in the range of $19million for FY2019, compared to $16 million in FY2018.
Financials
| ASX:JIN | |
|---|---|
| EPS | $0.425 |
| PE | 44.8 |
| Yield | 1.9% |
| MktCap | 1.2 Billion |
| 52 wk ranges | $6.51-$27.92 |
In our opinion, we are neutral on JIN.ASX at the time being.
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