Working through Tatts Online, Tabcorp increases its stake in Jumbo Interactive to 12.49 percent
Tabcorp may have led the campaign against the Australian secondary lottery operations of Lottoland recently, but it clearly sees good potential in the online lottery sector, judging by moves this week which have seen the Australian gambling giant increase its stake in local online lottery reseller Jumbo Interactive Ltd to 12.49 percent.
Working through subsidiary Tatts Online Ltd, Tabcorp bought around 3.5 million Jumbo shares at AS$ 2.37 according to a stock exchange notification. Jumbo additionally sold off a further 2.9 million shares worth around A$7 million to institutional investors.
In its stock exchange advisory, Tabcorp said that it regarded its stake in Jumbo Interactive as strategically important, and confirmed that it has no current intention to sell any remaining shareholding in Jumbo.
Tabcorp links to Jumbo began last year when the now merged Tatts Group entered into a long term expansion agreement with the online lottery reseller, making an investment of A$16 million in the company.
Jumbo posted an optimistic trading update recently forecasting net profit after tax in FY-2018 up 45 percent to A$ 11.3 million and revenues up 15 percent at A$ 37.3 million.
CEO Mike Veverka said this would be achieved on the back of “continual improvements in marketing that have engaged existing customers as well as acquiring new customers.”
