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Jumbo Interactive signs on non-profit for lottery services

Technology
ASX:JIN      MCAP $1.011B
15 August 2019 23:36 (AEST)

Digital lottery company Jumbo Interactive has signed new business with an Aussie not-for-profit organisation after a five month competitive bid to seal the deal.

Jumbo will be providing its platform in a five year licence agreement for the Endeavour Foundation.

Endeavour is one of the largest disability service providers in Australia, founded in 1951 with over 1800 in staff and 1200 in volunteers today.

As part of the deal, Endeavour will sign on Jumbo’s platform to help mitigate its own lottery – used to raise funds for the organisation.

Endeavour is known for providing equal work and education opportunities for Aussies suffering from mental disabilities.

The agreement with Jumbo is able for an extension for 10 years, subject to performance criteria being fulfilled.

“The Powered By Jumbo business is gaining momentum with a second leading lottery operator choosing Jumbo,” company CEO Mike Veverka said today.

Jumbo also provides its services for well known lottery institutions Oz Lotto and Powerball, alongside supporting charities Act for Kids and the Deaf Lottery.

“We are excited to be working with the Endeavour Foundation to deliver some of the benefits that we have been able to achieve with our own ozlotteries.com business,” Mike added.

Over a 12 month process, Endeavour will fully integrate the Jumbo system and solutions into its own lottery platform as part of today’s deal.

Shares in Jumbo Interactive have actually tanked today, diminishing by 16.3 per cent despite the new agreement and releasing positive preliminary results for the 2019 financial year results.

New accounts under the company on the year grew a whopping 107 per cent and earnings before taxation grew by 126 per cent.

Shares in Jumbo are currently trading for $16.93 after opening today at $19.90.

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