Jumbo Interactive Ltd

JIN: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$51.30	Mjrb	Wprvyvvbb

Jumbo Interactive Earnings: Diversification Strategy Proving a Challenge

Angus Hewitt

Aug 23, 2024

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.

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