Citi upbeat on Australia's Jumbo Interactive despite industry weakness

Jumbo Interactive

10/11/2024 23:31

** Citi says Australian lottery retailer Jumbo Interactive
 JIN.AX  reported a better-than-expected decline in Total
Transaction Value (TTV) for its main games despite bleak trading
update and industry-wide weakness
    ** Brokerage says the ~7% industry TTV drop for co's main
games was expected, highlighting fewer large jackpots
    ** Maintains 'Buy' at A$14.70; views current valuation as
"attractive" for when larger jackpots return
    ** Citi cuts JIN's 1H25 revenue and profit estimates by 1%,
due to static lottery retailing projections and lower Software
as a Service (SaaS) growth
    ** Says co's loyalty program can add A$3 mln ($1.97 mln) -9
mln in revenue & $1.5-6 mln EBITDA, if free members sign up for
its premium tier
    ** Adds JIN's B2C tech expansion is promising, yet past
acquisition hiccups warrant caution
    ** Stock down 10% YTD including current session


($1 = 1.5205 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; editing by Diane
Craft)
 ((Tanishk.Kumar@thomsonreuters.com;))