Jumbo Interactive Ltd
JIN: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$39.10 | Qlst | Cgcmrlwbc |
Jumbo Interactive Earnings: Diversification Strategy Proving a Challenge
Jumbo Interactive’s fiscal 2024 underlying EBITDA lifted 30% to AUD 77 million—about 2% above our forecast on strong lottery volumes. Lotteries are crucial to Jumbo, representing over 80% of earnings. But this is also Jumbo’s Achilles' heel. While Jumbo sells tickets to popular lotteries including Powerball and Oz Lotto, the brand equity of these games ultimately lies with wide-moat Lottery Corp. While digital migration is a tailwind for Jumbo, we think Lottery Corp will progressively take share from Jumbo over time, underpinning our no-moat rating for the firm.