Jumbo Interactive Limited

ASX:JIN

Jumbo Interactive Limited

ASX:JIN
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$16.15 (+0.6%)
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#85
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18
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Pinned straw:
moyleh
Added 6 months ago

Following the previous post with the report from Morningstar I compared the price of tickets from Oz Lotto (Jumbo) and The Lott (Lotteries Corporation) on Tattslotto, Powerball and Oz Lotto for 18 and 36 games. Exactly the same product sold by both portals.

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The annual revenue of nearly $119M of which $91M or 76.6% of Jumbos revenue is from Lottery retailing. This is a huge red flag. No mote and significant pricing differential. Not for me.

Selling INR
moyleh
6 months ago

My concern is that even one viral social media post highlighting the pricing differences could have a major impact on Jumbo's revenue. When I read the post regarding the pricing differences, I expected to find a small differential. The price differences are very large, and the market will mature.

13
Strawman
6 months ago

That's quite a difference @moyleh!

It's amazing how consumers have such little cost sensitivity. Says a lot about the inertia we have with the apps we are familiar with, and maybe it's a good sign they can charge so much extra and not lose customers!

It may be far more important in terms of winning new customers though... food for thought.


22
topowl
6 months ago

For what it’s worth I’ve been paying the premium and auto purchasing tx on Jumbo for years.

if it got to the point I was worried about the difference in price I’d probably need to stop buying tx all together.

funny situation.

10
Karmast
6 months ago

CEO Mike Verveka is a very smart guy. He works on making sure the Platform/App is better than any of the competition and he keeps on making it better.

I have seen this first hand with the charity lottery tickets I buy (Deaf Foundation, Mater etc). The ones powered by the Jumbo software are way better and easier to use than the non Jumbo versions. Only a small thing but its good confirmation for me of what he talks about as their moat.

So, very likely that The Lott will try and leverage a better deal in 7 years time when the contract is next up. I expect at best Jumbo will face a lower margin again but it will still be very profitable. At worst they lose the contract, although I suspect thats a low chance if they are still selling lots of tickets as The Lott won't want to lose any revenue if they can avoid it.

In the meantime Mike and his team will keep diversifying into other lotteries and also internationally, using their best in class platform and tech.

I'm happy to keep backing them in but watching closely. I'd rather back Mike and Jumbo over a bunch of "professional Directors" and a revolving door of shorter term CEO's at The Lott any day...

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