JUMBO Interactive (ASX:JIN) has flagged a significant increase in full-year profits, bolstered by customers flocking to the lottery platform.
Net profit is expected to increase by 529 per cent to $4.4 million in the 12 months until June 30, in comparison to $700,000 a year earlier.
Jumbo's share price rallied as high as 21 per cent to $1.57 apiece following the announcement.
The Brisbane-based company has forecast a 16 per cent lift in revenue to $34 million, while total transaction value is expected to tip $155 million - up 19 per cent.
Jumbo operates the Oz Lotteries website under an agreement with Tatts Group (ASX:TTS) and Jumbo Lotto in Germany under a federal license.
The company says 'a good run of jackpots' also contributed to the strong profit guidance, despite weaker jackpot activity during the second half of FY16.
"Continued investment in proprietary technology and marketing together with jackpot activity during the financial year, leading to a large increase in the number of new customer accounts, are the principal drivers of growth in the Australian lottery business," the company says in a statement to the market.
Jumbo also reduced expenses in Germany by $1 million last June, following a restructure of the business.
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support