Karenthepomhome.files.wordpress.com



So, was I nervous about getting my company, only a little bit but I was praying it was a company that I had heard of so that I wouldn’t be going in totally blind; coming from the UK, I guess I was hoping for one from my home land. Was it going to be a company I had heard of? Of course it wasn’t! But a little bit of research in Jumbo Interactive Ltd informed me that I did know them, I just didn’t know their trading name and that I had also put towards their reports for 30th June 2019 as I’ve purchased several lottery tickets since being in Australia, and not winning a cent back (yet). Loading up the website, I found it really easy to navigate, the home page was simple with just 5 headings to choose from. This was appealing to me, and probably will be to lots of other users as simple saves time as you can easily find what you are looking for. So, who are Jumbo Interactive Ltd and what do they do? Jumbo is a leading digital retailer of official and charitable lotteries using the latest technologies. They were founded in 1995 and have an employee base of over 100 people but in excess of 2 million customer accounts. The head office is based in Brisbane, but they also have an office in North America. They were listed on the Australian Securities Exchange in 1999 but are also listed on Berlin, Stuttgart and Frankfurt exchanges. So, there are a couple of my first key concept questions (KCQ’s), I shall investigate these further on.Reading through the annual report, the company have clearly had a very successful 12 months, so why is this? As you go through the report, one of the biggest areas of success has been the redevelopment of the Jumbo Lottery Software Platform that delivers a 55% increase in net profit after tax from a 23% increase in revenue. This is due to the company licensing out the software for others to use around the globe. Key Performance Indicators (KPI’s) for the company includeCost per lead $17.28 – up from $17.09 due to customer acquisition marketing mix.215k new online accounts – up from 161k due to marketing initiatives and higher jackpot activity.$371.13 average spend per online customer – up from $348.40 due to improved customer activity and higher jackpot activity as well as a positive contribution from charity games.438k active online customers – up from 354k due to improved customer activity and higher jackpot activity.I’m sure you’ll agree, some pretty impressive reading, the company seem to be ahead of the game looking at the results so what is driving this bar the redeveloped software? The company’s vision is ‘20/20’ with the goal of increasing online play from 18% in 2018 to 22% by 2020. They are also leveraging towards the younger customers where they have found a gap in the market. The tech savvy generation where everything can be done using your phone or even your smart watch (Proactive Investors Sept, 2018). My only concern here is that customers need to be over 18 to buy a lotto ticket, how are they going to govern this? To me, ticking a box to say you are over 18 isn’t enough. Focusing on the user experience and customer service is what the company recognise for contributing towards their record year.With regards to the charity lotteries, I wanted to know how these work. Do they also do their bit for charity and let them use their software for free? They use digital marketing to advertise these campaigns to increase sales and customers can buy tickets online. They charge the charity a commission on each ticket sold, of course, nothing comes for free in business.There have been lots of talk in the news recently about the possibility of a recession, it’s been 27 years since Australia was last hit by a recession (9Now, 2019), how will this affect people’s spending? Buying a lotto ticket is a luxury for many and if people start to become cautious how they spend their spare cash, will this affect Jumbo Interactive? Or will they see this as a chance of getting out of a tight financial situation and panic buy tickets? Only time will tell.So one of my first KPI’s was why have they an office in North America? Well in 2012 Jumbo went into a joint venture with Retail Gaming Solutions (RGS), a New York based company specialising in physical lottery merchandising and affinity programs (ASX release, 2012). I also asked, why are they on the German stock exchanges? Well in 2013, they expanded into Germany (ASX release March 2013) in the hope to build on the success in Australia and North America. Unfortunately, this was short lived and in November 2014, the decision was made to scale down this operation putting this part of the company into voluntary administration. So why did the German operation go into voluntary administration? CEO Mike Veverka said after two years in the German market, it has become clear that market conditions are not favourable for a licensed reseller model. Even with a much needed large investment, they were still unsure that they would get an acceptable return on their investment, so he decided that the Australian market held more potential at that point in time and decided to focus on that. (Business news Australia 2016). Jumbo has 7 controlled subsidiary companies, 6 of which it owns 100%. Cook Islands Tattslotto Pty Ltd, of which it owns only 1% is still 100% owned by Jumbo Interactive Ltd as the other 99% is owned by TMS Global Services Pty Ltd which is one of the 6 subsidiaries that it owns 100% of. TMS Global Services Pty Ltd own 6 other subsidiaries 100% on top of Cook Islands Tattslotto Pty Ltd. To make this easier to understand, I have copied the information below from the annual report. So, my final thoughts on my company? I’ve struggled to find anything negative about my company, be it financial reports or news articles so they are clearly doing something right. A forward-thinking company that is growing at a fast pace and setting the mark for competitors to try and get to and is clearly succeeding at what it does.Links:Jumbo Interactive Annual Reports 2018 Interactive website Investors (2018, Sept) now (2019) release (2012, Nov) release (2013, March) news Australia (2016) on others blogsStephanie Brammah Teasey BlogsI chose my top 3 blogs as they are blogs that I can relate to easily and make me realise that I’m not in this alone. 3. ANDREW TEASEI found Andrews blog easy to read and also very helpful as we both have gambling companies. Andrews company is actual a shareholder in mine!?Tabcorp Holdings 2. KYM HOFFKym provides a blog that I can relate to as we are both in the same stage of our lives. We both have the same self-doubts but we encourage each other to just go for it. What’s the worst that can happen right? FEASEYPaul is a great guy! We’ve never met but he is so helpful and positive and encouraging. Always gives great constructive feedback and his blog is great to read. One I always make sure I read when I log on. Paul is such a busy man, always on the go, always doing something, do you even sleep Paul?! ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download