The Jumbo Interactive Ltd (ASX: JIN) share price hit a record high of $20.87 this week and is now up more than 20x since trading for less than $1 per share just back in 2016.
Jumbo has been a pioneer in the selling of online lottery tickets rather than over-the-counter at your local shop and the growing popularity of internet tickets is what has fuelled its rise. For example it's easier to buy a ticket online and perhaps more importantly once purchased they cannot be lost in case you do hit the jackpot.
Recently, the company has also innovated in letting players bUy tickets via iPhone Apps or Google Play for example, which has also contributed to rising ticket sales. It also operates the ozlotteries.com website in conjunction with Tabcorp Holdings Ltd (ASX: TAH).
For the financial year ending June 30 2019 it's forecasting a net profit around $24.2 million on revenue of $60.8 million and total transaction value of $296.4 million. It also paid a fully franked 8 cents per share special dividend on May 8 in part due to fears at the time that a potential Labor government would eliminate some benefits available to eligible shareholders.
At $20.87 it trades at 49x annualised earnings per share of 42.8 cents.
