Jumbo Interactive Limited (JIN) Earnings Call Transcript & Summary

Good morning, everyone, and thank you for joining us today for Jumbo's very first Investor Forum. It's great to see so many familiar faces in the room. My name is Jatin Khosla, and I'm Head of Investor Relations at Jumbo. Firstly, I would like to acknowledge the Turrbal people, the traditional custodians on the land of which we meet today. We pay our respects to elders past, present and emerging. I'd also like to extend my respect to any Aboriginal or Torres Strait Islander people who are joining us for the presentation today. Our investor presentation material was lodged with the ASX this morning and a replay of this session, along with the transcript, will be made available on our website following the presentation. Today, you'll get the opportunity to hear from the entire Jumbo executive team, including our Chair and members of our operations and growth and marketing teams. The agenda for today will commence with welcome from our Chair, Susan Forrester, who will then hand over to Jumbo's CEO and Founder, Mike Veverka, to cover our strategy and 3 operating segments. You will then get to hear from one of our recent clients here in Australia followed by each member of the executive team. Our Chief Commercial Officer, Richard Bateson, is currently at the Canadian Gaming Summit, and will be joining us virtually from Toronto. While we do not have sufficient time today to do a full Powered by Jumbo demo, we have included a brief demonstration on aspects of the platform that have helped underpin our strong growth to date. At the end of the presentations, we'll move to Q&A, and we'll be taking questions from the room and also online via the webcast. I'd now like to hand over to our Chair, Susan Forrester.

Thanks, Jatin. Well, good morning, everybody, and welcome to Jumbo. My name is Susan Forrester, and I Chair the Board of Directors. I was really thrilled when Mike and Jatin suggested that we hold our first Investor Day, and I was very keen to attend. So today is all about pulling back the curtains and getting to know the superb management team, who stand right behind our CEO and Founder, Mike. I joined Jumbo in September 2020 with a mandate to accelerate our governance foundations and frameworks with a view to entering the ASX 200. During that time, we have refreshed the Board, developed a comprehensive growth strategy to 2025, appointed our first Head of IR, appointed a Sustainability Council to take carriage of our first sustainability report worked with Mike to develop an organization chart, which will position us well for international growth, appointed a remuneration consultant to assist with strategic remuneration frameworks. Our Board conducts annual reviews of its own performance and reviews its skill sets regularly. Our review indicates that we do work well with management while keeping them firmly accountable. Agile is an overused word, but I do feel that our Board is sufficiently flexible and responsive to provide management with the guidance and oversight when it requires it. ESG is a regular topic of conversation around our Board table. And as I said, we have established a Sustainability Council, which reports directly and monthly to the Board. I believe that directors actually have to take a longer-term view than executives on ESG and skilled directors should be looking at what's over the horizon succession, new sources of disruption, changes in regulation and innovation in our sector. And you would have had to be living in a cave with no WiFi not to have read the very bad press that nonexecutive directors have been receiving as a result of the recent high-profile inquiries into the gaming industry. The evidence has not been good for the gaming industry, and obviously, Jumbo operates in a very different part of the market to casinos, but that doesn't mean that there aren't governance lessons to be aware of. Our Board has already commenced discussions around lessons learned and what went wrong with such an experienced Board. No doubt there will be mountains of reports from law firms once the inquiry is finalized, but suffice to say, our Board takes its duties and responsibilities incredibly seriously, and we are currently reviewing our governance overall risk in our business, including the new risks, which come with international operations. So thank you again for your time and participation today. I hope you enjoy the deep dives. I've heard of the 135 slides you're about to be enjoying. And I hope you enjoy them over the next few hours. So I'll hand over to Mike.

Thanks, Sue. And thanks for the very valuable contribution you've already made to Jumbo in just shy of 2 years. And this Investors Day is actually one example of Sue's impact on Jumbo to date. Welcome, everybody. Thank you for your time, and we've prepared for you quite a lot of information comparison to 2 hours giving not just Dave and I, but also the rest of the team, a deep dive into what makes Jumbo tick. First of all, as you know, we're a digital lottery specialist, but what this means is that we have an entire focus on lotteries. As you probably know, Jumbo started off as a software company that found its niche in lotteries. And believe me, there have been plenty of times over the years where there was the chance to go broader into the gaming industry. And we've stayed pretty loyal to just lotteries, and I think that's turned out over the long term to be the right decision. We have certainly built a pretty enviable lead over many of our competitors in the industry, and that's just because of our laser-like focus on just lotteries. So our mission is to make lotteries easier. Now by this, we mean from the players' point of view, it has to be easy to play the lottery. Technology's a great thing, but what's the point of having technology to make things hard for you. So if the -- if it's easier for the player, more people will play and everybody's happier. Our partners, the charity lotteries, the government lotteries, has to be easier for them too. Lotteries can get complicated and we're trying to remove a lot of this complexity, and again, that will drive growth. So the result of this mission is our vision to become the #1 choice in digital lottery and services around the world. Now I'll give you a brief overview of our 3 operating segments, which came into being a bit over a year ago. Our first, on the left, there is our Lottery Retailing. This is how we got our start. We started off writing our own software system so that we could sell lottery tickets here in Australia. And this is the largest part of the business. While the 2 new divisions, Software-as-a-Service and Managed Services are the result of our vision a few years ago to expand beyond Australia and start kind of like coming back to our roots, and being more of a software company where we're selling Software-as-a-Service and also Managed Services, which is simply software-as-a-service plus additional services for particular clients. A couple of quick points about our history. It started back in 1995 when software was pretty basic, the Internet was very slow. And I had a pretty strong belief that software would get better and the Internet would get faster. And as a result of that, many new opportunities would come out of that. If I was wrong, then you probably would have never heard of me and you would never heard of Jumbo, but luckily, I was right, and here we are today. Now I mentioned this because this believe stays today. By no means are we at the end of the technology road. It's still very much at the beginning. There's a lot of improvements on the software side. There's a lot of improvements on the Internet that still needs to come, and there's a lot of improvements that, that will bring to lotteries. So there's still the bulk of the work ahead of us. Now we did start selling lottery tickets, not in 1995 but in 2001. And over the years, we worked with Tatts, New South Wales Lotteries, South Australian Lotteries and eventually now with The Lottery Corporation. In the middle there, we've got this sort of long bit there because this was a key pivotal point for Jumbo. We were a victim of our own success. Our software platform, which we wrote in the '90s was causing us problems where we were just selling too many tickets. That was a great problem to have. And we had repaired the software as much as we could. But really, the reality was that we had to rewrite it. So there was -- we're also in Germany at the time, and we had to allow for other languages and other currencies. I'll let Xavier talk about that in a moment, but that was a key pivotal point because not only did it improve our software platform, but it allowed us to go into these 2 new divisions and begin selling our software, not just for our own use, but also for sale to other partners. And this naturally evolved into the SaaS and managed services divisions that we have today. Now we've been around a while now. And as you can see, the TTV or ticket sales has had pretty consistent growth. And over the last few years, some pretty strong growth on top of that. And now that we've completed 3 acquisitions, which is the blue bit at the top, that's growing even further. So we definitely have done the hard yards over the last decade and a bit, and we're now at the point now where things are starting to accelerate. These ticket sales have translated into revenue and profits and cash flow. While we have a tech focus whereby no means a cash burn business. We do make profits. We do pay dividends, and we've done so for a long time. So we do take -- we do have that balance between technology and growth and also a conservative way of running the business, which in this climate is a very good thing. Now active players, what we call our North Star. This is our key focus. And Brad is going to talk about this in a lot more detail in his presentation. But basically, it all starts with an active player. If a player is not on our platform, there's very little that we can do. So what can we do to get a player on our platform and be active? Once they're on our platform, then we can weave our magic and things get better from that point forward. As you can see, over the years, it's steadily grown. Since we fixed the software platform, it's really accelerated and since we started acquiring businesses, then that's added more active players. And as we look at acquisitions in the future, we're constantly asking ourselves how can we acquire more active players. This is our entire strategy on a page. It's something that we released a year and a bit ago. And basically, it starts with our mission and vision at the top. Then it comes down to our strategic pillars of maximize, replicate and diversify. We maximize what we've already done, we replicate that into other jurisdictions, and we diversify into those jurisdictions. Then underneath that, we've got our 3 operating segments, which I mentioned before. And below that sits the foundation of our core capabilities, which are best-in-class software and our lottery management excellence. So over pretty much 2 decades, we've built some pretty good software, mature software, and we've learned a lot about the industry. And this is a very marketable product that is in demand around the world from people that run lotteries. All this, of course, goes into delivering outcomes for our stakeholders, which for our shareholders, players, our people and the community at large. A couple of quick points about our priorities. Australia remains our #1 priority because this is what's generating most of our business. Our relationship with TLC is important. We'll continue to build our lotteries. Lotterywest is a key priority for us and our charity partners, you'll hear from one of them in a moment, here in Australia will also remain a key priority. But we've had success in the U.K. So our priority will also be in Gatherwell and StarVale in the U.K., in which we are currently integrating. And in Canada, Stride, which we've got people over there right now and some of the people here in Brisbane right now will also remain a key priority. But the number 2, the blue dots there represent the areas that we're monitoring and that we would like to get into. So that includes in the U.K., the government sector, in Canada, also the government sector and also SaaS opportunities. But pardon the pun, the elephant in the room is obviously the United States, and there's a lot going on there. It's a complicated market, but it is one that we're monitoring, and it does represent a future for Jumbo. A quick look at the total addressable market and the serviceable available market. So obviously, it's a large total addressable market. We've broken this up into the blue being government and the orange being charity. Now it may surprise you the size of charity, but we certainly feel that the charity is an area that has been overlooked by the market and is a key focus for us. Now the serviceable available market, the difference between those 2, if you like to think of it this way, the total addressable market is the ocean and the serviceable available market is our boat. This is what we concurrently service with our products and services. Now this is expanding all the time as we develop new software capabilities and skills. We can expand this. But our current TTV is approaching $1 billion. And currently, our business development team have about $10 billion to go after. So again, quite a healthy serviceable available market there. Now as Sue mentioned, we have a strong ESG focus. We often get overlooked because technically, yes, it's a gaming company. But we go at lengths to explain that the lottery side of the gaming market does a lot of good for the community, and we're very conscious of that. Our charity partners are important part of communities. You can't deny that. Our software already at this early stage in the development was used to raise over $200 million last year by our charity partners alone, and that's not including Lotterywest and the Lottery Corp. So you can see that we play a key role in this activity and really do a lot to improve their ability to not just raise money for right now, but also into the future. We have this phrase here in Jumbo that we're not just giving them a fish, but we're giving them a fishing rod so that they can go out and feed themselves year in, year out. Jumbo's people and culture is very important. As a software business, people do mean everything to us, and we've developed over the last 20 years quite a strong culture. I suppose that comes back to myself. I'm an engineer. Xavier, who was there at the beginning, is also an engineer. So we just have this engineering focus that just comes natural to us. And with about 65 or 70 engineers on staff constantly growing, maintaining that culture is very important to us. The fact that we own our own software and develop our own software gives us a lot of strategic advantages. And so the people that develop that software is key. So we have created a very strong culture which is quite resilient, especially in markets like now where it is quite difficult. It's culturally diverse, 40% female. So we're doing the right thing with our people and culture. All right. Now I'll just go into take a closer look at our 3 divisions before I hand it over to the next speaker. So as you know, digital penetration is increasing. It's an unstoppable march towards digital, which is being powered by technology. We have this laser-like focus on player experience. We do offer a best-in-class user experience, always has been and [indiscernible] always will be. We offer players more ways to win via our government offerings as well as charity games, innovative ways to play Lotto Party and AutoPlay. Convenience comes back to our mission of making lotteries easier, and we provide a very high level of player support. 70% of our players are under 50 years of age because of our digital focus. And that is important because that is the future for lotteries. Strong track record of consistent growth. The orange there are sales on draws under $15 million, which are the more regular ones. And the blue on the top are the sales above $15 million, which are jackpot dependent. You're all familiar with Jumbo's story, and we still look at Jumbo at jackpots as a key driver. And you can really see that, yes, if Lady Luck shines upon us and we get some good jackpots then it affects that top band. But it's important to note that, that underlying bottom band, which is our bread and butter, just keeps on going up and up and up, and that's a key thing that we look at. Sometimes, we just don't have the jackpots like we haven't had in the last couple of months. But on a like-for-like basis on the general everyday jackpots, we do consistently well, and that's an important point. Player engagement and retention. I'm not going to steal Brad's thunder, but I will mention that from an overview, we do recoup our marketing costs in under 6 months, which is a tremendous effort by Brad's team. And not only do we -- whatever every customer that comes on to our site, we recoup the cost under 6 months. You know what, they just keep on playing after that. If you just look at an example, that gray bar at the bottom. So that represents players that we got back in FY '17. So we recoup the costs halfway through that year. Then they kept on playing in '18, '19, '20, '21 in higher and higher volumes. And each year, we add on more. So we got this layering cake effect where more and more players come in. Changes to games is an important part of keeping lotteries healthy. The OzLotto is very topical at the moment because it's just gone through a game refresh. The last game refresh was in 2016, but they actually didn't change the game. They just changed the price. So really, this is the first time they changed the game matrix in quite a long while. So we're looking at that to power this division over the next decade. We all remember what happened with Powerball on the right there. When that game got refreshed, then the jackpots came and so did the results. So the circle bit on the left there, it just shows that OzLotto is about 19% of the overall portfolio, but on the right, you can see, it wasn't that many years ago where it was the major game. And so we expect that OzLotto will become a lot more dominant than it has been. As you are aware, we did put our price up an additional $0.05. It's a bit too early to tell how that's going, but we're certainly the earlier indicators are good. So our key priorities for lottery retailing, in particular, OzLotto and our relationship with the Lottery Corp remain a priority. Player acquisition, that's still going to go, still a key priority. How to engage and retain those players, we've been regularly putting out our KPIs on that in our annual reports for a few years, and that will continue to go forward and to continue to provide enhanced governance, which is not only a necessity but it's also a selling point as we expand SaaS and lottery and the Managed Services part of the business. So a quick few slides about our SaaS division. So this is where we basically take our software platform that we use ourselves and we make it available to -- for our larger partners. They're typically larger organizations that already have their own infrastructure to run the lottery, but what they're looking for is a modern software platform. These are some of our partners. Now I'll just take a moment to point out one important fact that we're not just a software company that's written a software platform for a market. We actually use our own software. Now that's a subtle but important difference. So we constantly here, in fact, we had meetings just recently, and we were told that they find a lot -- the great thing about Jumbo is that we're solving problems for ourselves that also solves problems for our partners. That doesn't always exist when it's just a software-only organization. So that's something that's very unique about Jumbo and will continue to be an important differentiator going forward. A couple of key points about the SaaS division, scalability is the key. I'm often telling the team that this has to operate like a platform business where scalability is everything. So with every new client, things get faster, better and of course, more profitable. When we first launched the Mater, which was our first main SaaS client. It took 12 months. We've just finished launching our second SaaS customer in the U.K., and it took 3 weeks. So this is the type of scalability that we can deliver as time goes on. But Xavier will go into that in a bit more detail. As I mentioned before, security compliance, governance. This is all a necessity. And for us to deal with government, it's a necessity. However, this is often not available to the small organizations. So what we've done, we've built a business model, which makes these very high levels of governance and compliance available to even small lotteries. And so that's an important point. If you're -- Gatherwell, for example, in the U.K. deal with some very small lotteries, just very regional, could even be your own school lottery. And they're being afforded some very high levels of security governance that they just would not be able to find anywhere else. And that's all because of the model that we've built. A couple of points around our strategic approach in this division. It's about being a best-of-breed digital supplier where we can do central gaming systems, but we choose not to focus on this area because it's becoming a bit of a commodity, and it's in a bit of a decline. So it's the digital area that we have really accelerated ahead in. The revenue model is always a percentage, which is typical in the lottery industry. You can't come up to these organizations and ask for a large upfront fee. They just don't have it. But what they can do is give you a percentage of sales. And that makes them a true partner. They sell more tickets, we make more money. So we're constantly giving them ideas as to how they can increase their sales, and they're very happy for that information and we both succeed. A quick overview of our Lotterywest opportunity, because Lotterywest represents our largest SaaS customer. The potential for growth in Lotterywest is enormous. They're a $1.1 billion organization, 18% online sales with a lot of potential to go up. So we have prioritized Lotterywest. And not only is it a good financially rewardable project, but it's a great reference client for us as we look into these international markets, certainly, to be able to say to prospective clients that we're dealing with Lotterywest is a big tick. As you can see from the quote from Ralph, the CEO at Lotterywest, the teams have worked extremely well together over the past almost 2 years. And that gives them the confidence to expand the relationship a lot further down the track. But we have to take it step by step. Dealing with governments is certainly large, but it can get complex and a lot of patience is required. But it's often well rewarded. Now a few slides about the Managed Services division. As I said before, it provides that lottery platform, but it adds to a few other aspects to the equation so that we cannot just help large organizations, but we can help the small ones, even the tiny ones. And this opens the door to hundreds of thousands of small lotteries around the world, which, as you saw in the total addressable market, is quite huge. So we see that as a huge opportunity for us down the track. So it's not just software, it's services as well. We help them with program development, marketing, draw management. Basically, it's like a menu, whatever they need. Sometimes they can do bits of it themselves, and they need help in some areas. Sometimes they want us to do the whole lot. Gatherwell, for example, in the U.K., which specializes on the real grassroots, micro lotteries, does everything. It's a very simplified type of lottery. But once a lottery signs up, they're basically live within 5 minutes. So -- and that's a complete end-to-end system. That's the power of what we can do with Managed Services. So we've purchased 3 businesses, which are all going really well. We purchased Gatherwell over 2 years ago, and that already has over 1,000 small lotteries that it works with in the U.K. And this is an interesting phenomenon that we've learned in the U.K., and we're trying to apply here in Australia, and you'll hear it in a moment from LifeFlight, which is benefiting from this initiative. Then in Canada, we've purchased Stride, which closed a week or 2 ago. And StarVale, I visited them a few weeks ago, great business up in the north in the U.K. And we're looking to close that in the not-too-distant future. So now I'll hand over to Steve and Ian to talk to you about their experience with Jumbo.

Thanks, Mike. Pleasure to be here. I'm Steve Francia, and both Ian McLean and I are from the charity LifeFlight. So I'm the head of the foundation, and Ian is on our executive team, in the position of General Manager of business. Our charity LifeFlight provides rapid response, aero medical, and rescue services to people within Queensland. Across the state, we have 8 base facilities. We have 10 community helicopters, 4 jet ambulances and over 400 staff, including the key roles of the critical care doctors, intensive care flight paramedics, pilots, aircrew, engineers and many more. So the breadth of our network allows us to provide that aero medical care 24/7, 365 days in the year, all the people living or visiting the State of Queensland. Importantly, it comes at no cost to the patient. Last year alone, we actually came to the rescue of over 6,800 individuals within Queensland. To put it bluntly, we need to raise a significant amount of money to assist this service. And our mandate to do that is to do it effectively and efficiently. Hence, Jumbo is helping us with that. I think I need to give some context because I've personally now been involved and experienced in all of 3 Jumbo offerings to the charitable sector. In 2015, the organization that I was CEO, Head of Foundation for, became the first charitable price home lottery to be offered in Jumbo's retail area through Oz Lotteries. In 2016, I moved to a different organization where I actually meant in -- and soon after that, that organization's charitable program was under Jumbo's retail area selling their lottery program. It was a significant program in size, and so we worked with Jumbo -- and following, as Mike said, 12 months after that was initiated, and we worked with Jumbo utilizing Jumbo's SaaS program, Powered by Jumbo. More recently, we've been asked to provide the opportunity to LifeFlight to commence a charitable lottery program, hasn't been done before at LifeFlight. And so again, we've now partnered with Jumbo in the Managed Services area. So for me, 3 different organizations at all at different stages of development, all at different sizes, Jumbo has had the right offer for those organizations at the right time. And hence, we have partnered with Jumbo and my history with them. I'd like to pass to Ian just to talk about a business approach that we had to take in order to identify what we required within the organization and hence, what led us to dealing with Jumbo and the Managed Services section.

Thanks, Steve. And as Steve said, my role is GM business, LifeFlight. I joined LifeFlight in early 2021 after Steve joined in late 2020. On joining, we're provided with a really clear direction to reposition our fundraising activities to grow the level of community funding to LifeFlight. As you'd expect and as in any business, including charitable organizations, that required us to undertake a review of our current activities, where our strengths were and what the returns were on our programs. Unsurprisingly, this identified a need for sustainable and scalable fundraising programs, in particular, through programs that engage individual supporters or donors and providing regular long-term financial support. In fundraising and in particular here in Australia, there's generally 2 avenues to gain that regular financial support in the long term from pretty much individuals. Those are regular donor programs or charitable lotteries. Regular donor programs, they involve generally monthly standing orders from supporters. These are effective programs and they're valuable, but they require considerable upfront investment prior to seeing significant returns, and that return is generally commensurate with the amount of capital you can invest in the acquisition of supporters. Previously, charitable lottery program hadn't been a part of LifeFlight's plans, as Steve said. However, both Steve and I are familiar with the charitable sector and the benefits of charitable lotteries. So we understood the role that they could play in providing a new accessible and acceptable way to communicate with our supporters, as well as providing a regular, sustainable revenue stream for us. More importantly, charitable lotteries provide the ability to scale in the medium term without consuming significant working capital, of which we obviously don't have a lot. As part of the decision to launch a LifeFlight lottery, we had to satisfy both ourselves, but more importantly, our Board of our availability and our resources to operate those games on a platform that provided financial security, transactional security and security of our supporters personal information. We have to be able to market that program effectively, including the access to resellers of that product. That could provide extended customer support. We had to obtain and maintain multiple state permits for each of the individual games we operate, and that requires us providing regular audited reports to state regulators. We have to undertake all of this whilst also continuing to operate the other elements of our business, which are community-based fundraising activities, philanthropic support through relationships -- significant relationships and people with capacity to give. Based on our resourcing levels at LifeFlight, together with a limited ability to make material upfront investments in our own capability and capacity, we made a decision and gained the approval from our Board to seek a partner who could help us undertake the task of launching a charitable lottery program. Jumbo fundraising, obviously, an obvious candidate for us for a number of reasons. So the Powered by Jumbo platform has established itself now as a trusted and a robust solution for charitable lotteries. The marketing services that we need would be provided from an identified team of experienced direct marketers. And there's a demonstrated experience in managing and maintaining game permits, including the understanding of the reporting requirements and needs. All of this in a market where there are limited choices and where those choices generally involve suppliers of parts of those services and not necessarily the whole service. For us, working with Jumbo provided an operating model that reflected the partnership alignment of required outcomes, which was important to our Board and to us as a management team. In closing, Steve and I have been around the charitable sector for a little while now, and charitable lotteries is a special interest area for us both. Our current partnership with Jumbo and the managed service offering provides us with the best opportunity to establish a charitable lottery program and to support the growth plans that we need to maintain the service that we provide at Queensland. Steve, I don't know if you have any other remarks you want to make?

One more comment. I think I'd like to give a closing comment to the charitable sector. There are some 58,000 charities operating in Australia, and that nearly doubled the amount there was in 2000. They're all at various sizes, they're all at various growth and stages of development. But many though, of the same size as what LifeFlight is. Many of those do not have a charitable offering -- charitable lottery offering. I think they should relook at that because it is and has a number of benefits within that whole giving program that they could have. So for me, I think our experience tells us there's plenty of benefits in the charitable lottery program. Thank you. I think I'd like to hand over now to Brad Board, Chief Operating Officer.

Thanks, Steve and Ian. They've been great partners of Jumbo for the last 4 or 5 years, integral part of aligned shared outcomes, and that's very much how we operate our business. It's all about outcomes. So we'll touch on more of how we do that now. My name is Brad Board, I'm Jumbo's Chief Operating Officer. I've been at Jumbo since 2001, in the early days where we were just an e-commerce company. We hadn't even gotten into lotteries at that point in time. So it's been an interesting journey as we've moved from that into acquiring TMS Global Services, which was Oz Lotteries and then into what is now Jumbo at scale with the 3 operating divisions. So it's been an exciting journey, and there's plenty ahead of us. So I'll just get a bit of a run-through of how we run the business, and we've bundled it as a description of lottery management excellence. So I'll cover 3 areas, which is our vision, strong foundations and our modern tech culture. I need to keep in sync with my clicking -- sorry. So on vision, our vision is to be the #1 choice in digital lotteries. So as Mike touched on, players are our North Star. So from our perspective, we've always held the view that the most important part of lottery experience is the player. And now that we're operating in multiple operating segments with different ways of operating a lottery, the common currency or baseline is actually the players. So we use that internally for essentially aligning outcomes just as Ian had touched on. So we've got different needs with our partners. So in the retail sense, working with the lottery company, in the SaaS sense, in the managed service sense, it all touches on the player. And so if we keep them in mind in terms of how we approach problems, opportunities, it's a very efficient way to convey the things that we're working on and come about with the best results. Often, it can get out of sync if you don't have that common baseline, so that's what we found is the best way that we operate, and we are moving forward with that. So we align our investment appetite accordingly. And so whilst you've got different value parameters in for a player in each of those, the common goals are often very similar. And that's where our technology that we've been developing is a brilliant equalizer in terms of how we solve all those problems and deliver value to organizations such as LifeFlight. Some of those strong foundations are now seeing to very much formalize, as we expand the business from being just Oz Lotteries back in the day into now what is multi-countries. So multiple jurisdictions on different timelines and time zones, and also the different segments and different businesses. So a core part of that is this sense of centers of excellence. So we're standardizing the key components of the business under our senior leadership group, so things like marketing, things like product development, engineering, risk management. All these things are becoming a centralized suite playbook that we can roll out to each of those businesses that we've got in operation as well as when we acquire. And obviously, when we go to look to buy business, we're looking to not only share our knowledge, but also learn from those businesses. And we're starting to find that there's enormous amount of value that's coming out of the business we're acquiring. So it is much about getting that value of it sharing that. So next part of how the value exchange is our modern tech culture. So as Mike said, we've always thought of ourselves as a technology company. And even as we move into things which may appear to be less techie such as managed services, that sort of thing. It's very much a valued asset to be taking this tech culture that we've got. So there's some key components to that being the fact that we're a data-led organization. So we use our data in terms of we log everything, we have the tools to monitor at all, and we train our partners and our staff in how to analyze that. And that comes back to a core focus from us that saying internally, which is data over opinions. So it's very easy when you've got a growing organization with the amount of opinions and ideas, and everything starts to proliferate where it snowballs. And it can often sort of get carried away how you sort of manage that. So a really important part of us of having discipline is actually data. And we would have seen -- you would have seen some of the announcements we've done over the last year or 2, that increased investment that we've made. So we've got tools like Amplitude on our product analytics and AI, full story for our player analytics in terms of what people are doing. We've got Braze for our automated marketing campaigns. And things like Looker for our insights. All of that hangs off a common data architecture and becomes this asset whereas we get more partners, more players becomes more and more payable to Jumbo. So there's often discussions around things like IDFA impacts on Jumbo and the broader community in terms of app marketing. From our perspective, something like that, it has a limited impact because we've got a very strong data culture in the sense that we're used to solving problems like understanding value of where our players are coming from and how they interact. And we've got multiple data sources. So just to sort of loop-back on that, that's often a common I thought I'd just raise that in terms of the value that brings. Next important thing is sustainable growth loops, and Mike touched on this with the retailing segment in terms of our marketing investment. From our perspective, we do everything so that it scales. And we've got this constant discovery of finding scalable things that we can put an input in and we get more out common sense business. But we've set up a growth team for Oz Lotteries and their key purpose is to maintain the growth loops we've got, optimize them and discover new ones. And 1 great example our marketing acquisition marketing for Oz Lotteries, which is the KPI we've shared many times over the years. We recouped in the first 6 months, the ROI on that. And then moving forward, there's a long tail. So we handle our marketing activities off that so that we can continue to extract the yield. And there's quite an art to it. And I think the fact that we've got that data infrastructure, I touched on, is quite critical to these sort of things that we know, how much we can spend, where we can spend it, how we can spend? And also starting to leverage tools like the AI and stuff like that to make decisions around these things that you otherwise wouldn't have thought of as opportunities but it starts to pop up in the data, which is really exciting for us. Another key part being a tech organization is insight-driven development and iteration. So realize this diagram here is a little bit complicated, but essentially, it means that we take all our insights that we're collecting in our data stack. That's forming into essentially what are problems and opportunities. And we've got teams which are dedicated to figuring out what the right things are to solve and then they put to other teams in terms of how to solve that. It can also be a risk that you sort of jump into developing something just because it was an idea. We invested a lot of time and effort in terms of collecting those insights and shaping the right things to do and how to do in the right way. So Lotto Party, as you've heard, that's great example of this process where we had insights where we had been observing people how they use the syndicates function, how they buy tickets in Oz Lotteries. We've heard their feedback through our help desk. We had heard like the ratings the people give on the site, there was data. Everything was showing that there was some sort of an opportunity there. And our product team digested that all into a range of different opportunities that they could pursue and problems to solve. And then that was handed over to our development teams who co-designed this new feature, that has turned out to be tremendously successful for Oz Lotteries. And the big part of what we do is that we closed the loop in terms of everything we're pushing out. We're actually checking that it works. And so this is just 1 example of the everyday life of our tech-driven organization, the things we build, things we do in the business. I guess touching on that testing side of stuff that relates to a big mantra internally that we're opinionated but agnostic. So we've got opinions around businesses we're buying and things that we do with our technology that we believe something is the best or this is the right way to go. However, until we go through a proper process, we've always got in our back pocket that there's other ways to approach things. So we deploy in-depth discovery. We're asking all the right questions, listening, that sort of thing, to sort of form ideas, hunches where to go. We're always building in some capacity to work in increments. We're not about massive big bangs for us. It's about the steady incremental growth and value creation. That's been something that's worked for us really well over the last 20 years and then testing everything. All those increments are early as good as the testing. So it's all about close the loop, have the data, prove that it works and use that as a learning for the next thing. So Mike also touched on this concept of scalability. So a big thing that we've done is by landing on the platform over the last so many years. We've had this idea that efficiency really comes from like software, big believers in using software to automate things that otherwise people have to do to remove risk and identify opportunities. And so we have increased the amount of TTV and players in the platform exponentially, while the headcount's been relatively steady in terms of its growing. It's nowhere near as in sync with that trajectory as what that growth has been for the player activity. And that's what a technology business is all about. Another really important part to us, which has become very obvious to other companies in the pandemic is this concept of remote work. We were lucky that being a tech company, we were doing a lot of asynchronous work practices before the pandemic. We had a lot of things which were using online cloud tooling. We had a very agile culture in the business that when the pandemic hit, we were ready to roll. It all happened very quickly. It was no disruption at all. And we also had the luck of having acquired Gatherwell shortly before that, which was already a remote-first business. So we'd observed firsthand that remote first, remote only is not a scary thing. And there were things that they were doing that we were already starting to take on board with ourselves so that when pandemic hit, we knew which way to roll. So we've got staff all around the world, different continents, different cities, different time zones, and that's really becoming sort of a secret sauce for us because it means we've got access to a greater talent pool, but also more hooks to sort of keep people engaged in working the best way that they like to work. So that's a quick run-through of how we run the business. I think we're going to touch on one of those critical bits, which is actually the platform. So Levi Putna is going to give a demo; and Mel Cowan is going to give an example of how we do some of that growth marketing. So I'll hand over to them now.

Thanks, Brad. So I'm Levi Putna, I'm the Head of Operations here at Jumbo, been part of the team for over 10 years now and work through various roles in my time here. Most notably, I was involved with establishing our SaaS business. So I have a really good understanding both of how our partners are using our platform as well as how we're using our platform to grow lotteries. So today, I want to give you just a little quick demo of our platform. It's quite a short timeframe, so we're going to keep it very focused. But before we jump onto that, I'd spend a little bit of time, a few minutes, just giving you a little bit of an idea about like what is our platform and how are we kind of using it across the different sectors. So there are a number of different ways we can use our platform. It's quite flexible in how we deploy it. But there are 2 common ways that we tend to deploy more often than not. The first being that reseller or retailer deployment, and that's where we're deploying everything that we need to be able to support the sale of lottery tickets across multiple channels, the management of those players, buying those tickets, and then a very thin kind of luxury management layer that backs on to an external gaming system or a third party or a downstream lottery system as that point of truth for lotteries. The other common configuration is where we are deploying our full stack lottery solution, and that's that managed service and SaaS kind of deployment, where we are deploying everything required to sell lottery tickets across multiple channels, support those players and run that lottery in entirety, including the ticketing and the random number generation, and then price management element of it. So an example of that retailer-reseller model is obviously what we're doing with Oz Lotteries and somewhat with Lotterywest, where we're providing that interface for the sale and support of customers, but we're backing that on to in the case of Oz Lotteries, onto the Lottery Corp's gaming system and then onto the Lotterywest gaming system in that instance. In the SaaS space, Mater Lottery has been an example where we've deployed that full stack that allows them to manage their lottery in entirety and LifeFlight, who you heard from earlier, has a similar setup. The interesting thing to note here is that because we are selling as a reseller, some of those managed service and SaaS products on Oz Lotteries, we're also able to back onto one of their own platforms as that point of truth for lottery. And this ability to network our various deployments together does give us a lot of flexibility and opportunity to do things in the market. All right. The platform is quite significant, but we tend to summarize it down into 3 really high-level categories or high level kind of functional components. The first being that sales channel and those number of sales channels, including where that -- and sort of our operator purchase bits that we'll look at shortly; the player and customer management elements of the platform and that lottery management element. But something that is kind of between the lines here that is quite important is that integration. And the fact that we keep and treat integration as a really first part -- first-class part of our platform. This allows us to really focus on the things that we do best in market, which is build lottery platform and then get that flexibility to leverage other tools that are best in class in those other categories or that have a more regional specific focus like payment gateways or fraud management solutions. And most notably, what Mel will talk about shortly, which is Mater tech stacks. All right. Something you would have heard, pop up a lot today already, and you'll probably continue to hear is players and that we put players first and players are really important to our platform and really building that engine of growth, which is allowing us to utilize the platform to the best availability and grow lotteries. And what are players to the platform? They're data. So we're going to have a bit of a look through the platform. We're going to go through a little journey, talk about some of that data we're capturing about the players. I'll show you how we're using it operationally to support and manage those customers before Mel will have a little bit of a chat about how she's using that from a marketing perspective. So I'm going to open my laptop now, and I think we're going to jump over to a live demo. So customers -- the first point that we typically engage with customers, and Mel will talk about it shortly by -- is through an ad, either through Facebook or Google or through some other channel. And by clicking on that, they land on our website. Already at this point, we've learned a lot about that customer. We know the type of campaign that they engage with the lottery that they were interested in, the channels that they were browsing and they came from. So we've already started to establish a little bit of a picture about that customer. At that point, they can start to browse around our site, clicking on a few different things, exploring and understanding a little bit. And we're starting to capture a little bit more information about this customer. What were they looking at, what were they interested in. And then they can kind of progress through to actually purchasing a ticket. So they've added it to their cart. And we've made some recommendations about other products, other lotteries that they may be interested in. For this anonymous customer, this customer that hit the site the first time, our AI and machine learning would have been making some decisions about customers that came from similar channels and engaged with similar lotteries and making some recommendations. For those known customers, customers that have logged in, that are purchased with us for an extended period of time, we can start to make more educated decisions on things they purchased in the past and things similar cohorts of we're interested in. They can click on those and have a little browse around. And again, we've captured a little bit more information about that customer that this is something I looked at. So if they did not add that to their cart and then continue to check out, it's something that the marketing team have been aware of that they have looked at that and we can use some of that data down the road. At this point is where the customer logs in and this is where we start to tie some of that first-party data that we have been capturing to that 0 party data. That data of our own where we can start to build a more comprehensive profile of that customer and start to fill in some of those gaps about that customer. Right, I'm going to switch over to our admin site now, and I'll just refresh quickly to make sure we're logged in. As a security measure, it logs us out frequently so we have to do that just for the demo. But what we're looking at here is a customer profile in the admin system. We can find that profile by a number of different ways, typically through a search either by their name, their e-mail address, their phone number, their address or a unique customer identifier which all customers are provided with -- on the sign-up e-mail. So you can see a fair bit of information here. I'm not going to talk to at all, but kind of some important things to note are that you can kind of see the time that, that customer has been -- or that player has been playing with us. This is obviously a demo account I just created, so it's very short time, but it's not uncommon to see 9, 10 years when we look at customer profiles in production. The next little bit I just want to quickly touch on is this information about the devices that, that customer is currently logged in on. And it's providing us a lot of useful information from a fraud and a regulatory compliance perspective. We've got the IP address there, which gives us a little bit more specific information about where that customer actually is logging in from in the world versus some of the information that they've told us and then provide us about their address as to where they're saying they are. This can be particularly useful in managing fraud and some other things. As you can see over here, this addresses the address that the customer provided us. And next to it is a little flag. That flag is generated based on their IP address that they last logged in on so we can get an idea if they're telling us they're in Australia, but their IP address is suggesting they're elsewhere, it would start to raise some flags for us from a fraud perspective. There's a lot of other useful information here about account balances and marketing engagements, telemarketing engagements. But I'll quickly call out here that it also gives us an indication whether that customer has been reachable via e-mail or whether that e-mail is bouncing. When those customers call up for support, we often look at that and try to resolve that problem if we're not able to deliver an e-mail to a customer. Additionally, up here, we have a quick indicator that potentially, this is a duplicate account. So that customer may have created another account on the system, either forgot their password to log in or there is some indicator of fraud or something at work that has been creating duplicate accounts. I mean it gives us a little bit of a match there. And it's something our operators can use from both a fraud and responsible gambling perspective to get a bit of feel of what's going on with that customer and what they're doing across our platform. There's one other kind of heads up dashboard that we use quite frequently from a fraud and a responsible gambling perspective. And that's this quick overview here that we have or the customer audit, which is giving us a real high-level indicator of that past engagement with the customers, what they've been spending, how those spending behaviors have changed over time so that we can keep an eye on things and if we have any concerns about that, the operator can address it. We also have a little bit of information here, which tells us about that source that, that customer originally came in from and joined the platform. This is a demo account, so I created it directly within the platform. But if they came through Facebook or other channels, that would be indicated there. So it's also very useful for us from a fraud perspective, as a lot of customers come through those channels initially when they engage with us and when we do see one that's come direct, it is something that we would look into a little bit more detail. There's a lot more going on here and we can kind of get a deep dive into customers' history, the subscription products that they have with us and the really look at how long those have been playing and deep dive into those tickets. The correspondence history, so the history of communications that we have had with those customers, are all logged in here as well and something we can look at. The last bit I really just wanted to take a look at before I hand over to Mel, and that's just this raw feed of customer events -- customer data that we've got here. So certain parts of that information is really useful for us from an operational perspective. But that raw feed of data on its own is not always super valuable for us. But it is very valuable if we can pump it into the right tools that can understand and then process that data a lot better like fraud tools and analytics and BI tools, but most notably into our marketing stacks that we can really use to learn from that data and build a real engine of growth. So on that note, I'm going to hand over to Melissa, who's going to talk a little bit more about that.

Thank you, Levi. My name is Mel Cowen. I'm the Principal Growth Marketer here at Jumbo, and as mentioned, I'm going to be talking to our growth marketing strategy. So we have 3 main areas of focus in growth marketing, acquisition, which is focused on the acquiring of new players to the site and app, nurture, which is focused on engaging players, so encouraging them to come back for that repeat purchase, engage with another product or another game, and then our nature initiatives, which is focused on retaining existing customers or retention goals. So we know that retention is our main driver of sustainable growth here at Jumbo. So we're really focused on converting all of our players to monthly active players. And this is where these nurture and nature initiatives really come into play. So when we acquire new user through Facebook, Google, one of that many channels, they come on to our site, sign up, make a purchase. At this point, we collect 0 party data, so that's the data that they provide to us on sign up in that sign up form. Then we pair that with first-party data that Levi was mentioning. So what they've clicked on, what ad they've come through on, what they purchased, what game, what price point. And then we send all of that 0 party and first-party data through to our behavioral analytics tools. So this is where we can really generate insights about our customers and we can really sort of understand their behavior. So then we use these insights to send really personalized marketing campaigns to hyper-targeted segments of customers. The revenue acquired from these campaigns has been reinvested in acquiring new players through our paid channels. So that sort of feeds our growth loop and helps to power our retention engine. So digging into exactly how we deliver some of these campaigns, it starts with the behavioral analytics tools. So with these tools, we know not only sort of who do send messages to and when to send messages, but we also know what content to send to players as well. So through the use of AI-powered technology, we can actually predict what customers are likely to play next or what games they're likely interested in and what future actions they might take. So with that information or that data, we can send personalized marketing campaigns with upsell opportunities or encouraging players to try a product that they're likely to be interested in. A key example of this is AutoPlay. So AutoPlay is our recurring subscription product, automatically enters you into the drill every week. We -- here, we can segment a group of customers that are likely interested in AutoPlay, and we can send them a series of prompts encouraging them to try AutoPlay at the exact moment that they likely to need it. And in terms of the prompts, we've got many different channels that we can use. We've got an e-mail and an app push there on the screen, but we've also got in-app messages, content cards as well. So we can send this player a series of prompts encouraging them to AutoPlay at the exact time that they need it based on behavioral triggers. So a behavioral trigger for AutoPlay might be when a customer starts playing in the same lottery draw multiple weeks in a row or when they start picking their own numbers rather than using our quick pick tool. Whatever that behavioral trigger is, we identify that and then we can send messages or prompts to that player when they've displayed that behavioral trigger or when they've taken that action. Another example is Lotto Party. Lotto Party is our social syndicates tool where players can invite their friends and play Lotto with their friends. So we can know the same thing here. We can segment our group that are likely interested in Lotto Party based on previous behavior. So a trigger for that might be when they're playing our existing syndicates product, and we know that they're sort primed or they're ready to create their own Lotto Party group and start playing with their friends. We also know the best time to sort of encourage customers to try a higher price ticket or a different game, create another Lotto Party with a different game. And what we can also do here is actually nurture new players or new acquisitions as a result of Lotto Party into other games. So as players sort of invite their friends, and we have and refer their friends to our product, and we get these new acquisitions coming through, we can refer them to other games and other products based on that behavioral history or that predictive analytics. So since investing in our Mater tech stack, and sort of using data to inform our marketing decisions, we've seen increased lifts in retention. We've also seen an increased uplifts in those high-value products like Lotto Party and AutoPlay. And that's really because we're able to send these messages to customers with the products that they need at the time that they need it. And the data that we collect and the stack that we have really allows us to do that. So that was a really quick overview of growth marketing here at Jumbo. We're certainly not finished yet. There's a lot more exciting developments to come, so watch this space. And I'll now hand over to Xavier.

Thank you, Mel. My name is Xavier Bergade. I'm the CTO for Jumbo, and I have been for the last 25 years. Actually, I was working with Mike even before Jumbo was a company. I'm going to give you an overview of how Jumbo was -- the platform, sorry, was developed. Some of the lessons we learned along the way and how we ended up with what I believe to be the best lottery platform in the business. Starting with the platform -- the evolution of the platform, I'll go over some of the significant technical challenges we faced over the years and how we overcame them and ended up with what we have today. In 2003, Jumbo acquires TMS Global Services. At the time, the ozlotteries.com website is outsourced to another IT company. We leave it alone for a couple of years, learned the internals of it and so on and so forth. And in 2005, we start taking it over with a handful of developers. At the time, it was a pretty classic so-called LAMP stack, which turns for Linux, Apache, MySQL and PHP, a very common way of building websites at the time. We work on it for a few years. And the next big step is in 2008 and 2011 when we got the contract for New South Wales Lotteries and then followed by SA Lotteries to run their online website. So we had to do quite a bit of modifications to our platform to support sort of either mode. 2003 -- sorry, 2013, we -- Jumbo got the license to operate in Germany to sell online lottery tickets. And at that time, we had to support the German language and also interface with up to 16 so-called lenders states in Germany. They each had their own platform in the back end and they're on API. So the only logical thing to do there was to rewrite from scratch, which we did took a bit of a risk, but it paid off very well. We ended up with a much more manageable platform to deal with. Carried on for a few more years, the sales kept going up, forever going up. And we started seeing some problems with the big draws. And I mean, over $50 million. We've seen $150 million. That was our biggest one. Towards the end of the draw just before the sales close, we have customers not yet been able to buy their tickets, the site becomes unresponsive so and the marketing activities can't proceed. So we spend a lot of time experimenting with various technologies and kept improving so that by the end of 2019, the system was basically dependent on hardware and the more hardware we throw at it, the better it performs. So that worked quite well. In the last couple of years, we spent a lot of time on deployment of the platform. As it was mentioned earlier, the first SaaS deployment took 12 months with Mater. And the last one we did with Your Hospice Lottery in the U.K. was on the 2 or 3 weeks to do. So big improvements on that. And it requires a lot of the re-architecting on the back end to get to that, which pays off in other ways as well. So as you can see over the years, we've built a great platform with an engineering team to go with it and all the necessary skills. We went from 3 developers at the start to about 65 to 17 nowadays and learned a lot along the way, spend on a significant amount of money. We estimate that the last 10 years, about $50 million was spent. Just in the last couple of years, 6% on average is what we are spending. I'll now go over a few KPIs that we are interested in on the technical side of things, particularly 3 of them, the signups per second, sorry, before I carry on. This is for the $120 million Powerball, the one we saw in February 2022. And the reason that's our benchmark nowadays. We've seen $150 million before, but that was a few years back, and this one is a lot bigger. So that's our benchmark. So signups per seconds, and I was saying that's important to us because the customer -- sorry, at the back end has to go to an address check as well as an age check. So that's this integration with external services is always key. The checkouts per second, also very important because it implies a treat to the payment gateway. And finally, the ticket sold per second because that also implies a trip to the lottery corporations back end. So very keen on those numbers, and we constantly monitor them for every draw. And for the biggest one, we do a retrospective and make sure that we're on top of it in terms of capacity. Just to support what I was talking about this are the sales for the last day, leading to the close of the Powerball $120 million. As you can see on there, starting from 5:00, ending at 7:30, staggering amount of demands. Everyone wants to get their ticket it seems at the very last minute. So that's what we're dealing with. And for context, probably the 9:00 p.m. peak is about what we see on an average draw of $10 million. I've got a few features of our platform, starting with security and compliance. Our development process follows and is compliant with an ISO 27001. We also compliant with PCI DSS. We are currently at level 2. Will be a level 1 this year because of the number of transactions we do. And those are both audited on a yearly basis. We host the ozlotteries.com and all the SaaS, the Australian SaaS on-premises in the tier 3 data center in Brisbane. The platform can be hosted as well on the cloud, which we do in the U.K., and we also have a backup data center hosted in the cloud in Australia. And the reason we do that on premises is mostly because of cost. It's very expensive to host in the cloud over the long term. Our ability to scale is one of the -- what we regard as one of our key advantage. We spent, as I was explaining earlier, a lot of time on that. And we have about 10% of our engineering going to -- supporting the platform, tools and training, but everything else is on features. So 90% of it. We like to release early. We like to release often in a smaller increment as possible. And that lends itself very well to the modern architecture we have these days. Many microservices, multiple development teams working on different aspects of the system and really seeing at different times whenever they're ready, basically. Brad has alluded to, our way of experimenting. We have a team we call JumboLabs internally comprised of a small number of developers and product owners and designers. And the idea there is to experiment and get the feedback as early as possible and iterate. Some of the examples that this producers was Lotto Party and a lot of our marketing stack is built that way. We like to experiment and reiterate. So as you can see, we've got -- we've built a robust, scalable and flexible platform over the years as well as a great engineering team to work on it. We used each step as a springboard to the next leveraging on our experience. We're not afraid to experiment with either new technologies or even new ways of working. And of course, there's more to be done, but I feel that we're in the best position to handle whatever comes next. We think that the fact that our platform is built in-house is a strong competitive advantage. It took us a long time and a significant amount of money to get there but this would be very hard to replicate for someone else. And combine that with our [ narrow ] focus on online lotteries we end up with a platform that's very highly regarded for draw-based solution in the industry. We see technology as a key difference for successful lottery and we intend on building the best we can anywhere we can operate. Thank you all. I'll pass it on back to Brad. He's got more to say.

Thanks, Xavier. Yes, Xavier certainly built an impressive platform and culture with our technology over the last 20 years. It's been a pleasure working alongside as a peer. Having this fantastic underpinning of a lot of our commercial aspiration with technical realities in technology. It's often very easy to jump on the latest fad or anything like that and rapidly sort of expand in terms of headcount or cost and that sort of thing. And Xavier got a great pragmatic nature to assessing things, testing them and marrying it with opportunities. So brilliant platform we've got there. I guess I'm going to jump on to a run-through of our acquisitions today. [indiscernible] creating a blueprint for our acquisitions. So there's a bit of a lot going on at the moment in terms of companies we've bought. The crux of it is that we think it's all about being an evolution, not a revolution. So there is a lot that we have done over the last few years that we're just borrowing those principles into how we approach these companies we've acquired. So to us, it's a process. We've got number of goals we're looking to achieve. There's some key principles. We've got a playbook we're working to. I'm going to give you an update on progress as we've gone through it. Some observations and a quick summary of the priorities ahead just to give a bit of confidence of where things are heading. So integration goals. From our perspective, we're looking to do a number of things in integrating. It's not just about having a checklist that we work through and move this thing over, we'll get on to whatever technology. We want to uncover growth opportunities, so in terms of talking to the businesses we're acquiring in the teams. We think that given they've been private enterprises, there's a number of opportunities that being part of a larger family can avail. So that's one of the early things that we do with them. We're looking to get common value exchange. So from the teams that we're acquiring they've got a lot of value that we can add into that common center of excellence that I mentioned earlier. Just as much as us through sharing with them. In terms of company values, we're looking to align the values of our organization with the businesses we're acquiring. So we've got a big head start in the sense that we're only buying businesses that are very closely aligned in our culture already. However, closing that loop early on, we involve people and culture in terms of integrating the teams that helping them understand what Jumbo is all about and the reverse so that there's no questions around core values or any of that sort of thing. And another key bit early on, we look to establish best-of-breed compliance, risk management, player welfare practices, being regulated gaming environment that we play in. That's top of the pile in terms of our concern, that's always going to come before everything else. And then the final bit that we're looking for in our goals is confidence in technologies. So great tech company, as we say, we've got a technology which is touching all of these businesses. So we rapidly want to understand the value that they've got there in terms of what we could absorb into our stack and use in other businesses, but also what we can offer them. So there's a 2-way discussion there. It's very much about listening and learning on all these points with the teams. So some of the guiding principles we're deploying as we go into these discussions and trying to achieve these goals. Obviously, there's the players first and that plan will start, which I touched on. That's the common baseline discussion. Everyone knows why we're buying their organization, why we're wanting to work with them and where we're heading. The group led best practice, as I've touched on. We're looking to essentially bring on that centralized centers of excellence, our senior leadership group, get them involved in the businesses so that it's as flat as structure as possible in terms of that knowledge transfer and understanding problems and opportunities. Instilling the data over opinions mantra. So obviously, when you're an acquired company, it can be very scary, having a company from another country or bigger that sort of thing. So we look to get visibility of their data, sharing of our data, the testing, all that discipline so that discussions we're having, it's about data, it's not opinions that could perhaps give rise to debate or anything like that. It fast-forward things to a harmonious way of deciding road maps and things like that. An important bit is doing things right, no shortcuts. So we're in regulated gaming environment. There shouldn't ever be shortcuts. So we're all about doing the right thing to get the result, which leaves us to the next point that outcomes over output. We're never going to be a company that just has 20-dot points, and that's what we check through for every acquisition. Every company is different. Every market is different. So we have a high-level understanding of our outcomes we want to achieve, and then we work backwards from that in terms of sub outcomes and the outputs come from that. So some acquisitions may be quicker, some may be longer. But as long as we're getting the outcome, that's the right way. And to get those outcomes, it's about incremental iterative changes as I touched on earlier. It's not coming in and doing big bang. When then this is everything that's changing. That's too disruptive. It's the evolution, not revolution that I said. And that uprates trust with the teams that we've got there. So the more trust, that just builds that snowball effect and helps things get more successful. And the last point is respecting the brand. So we're buying businesses that don't come out of the box called Jumbo X, Jumbo something. They have a long history of IP buildup in those brands that it's tied into the psyche of their staff, their culture, everything. So we respect that as much internally as externally to the market that they're already working with. So the minimum brand alignment is attaching a tagline such as a Jumbo company. And in due course, then is to be an outcome that's achieved that they understand as well as us that would dictate how far we join those brands. So data, all that sort of stuff guides those sort of decisions. In terms of the playbook, I say that each company is different, but there are some common aspects. We've got pre-closed period and then a few phases after launch. Obviously, until we've closed, there's a limitation in terms of how much information we can get from staff, we can get from the sellers and how much we can get involved. However, that tends to come around in terms of supporting their BAU, things they need to do to run the business, leveraging the due diligence materials that we've already got and just having cursory discussions with the management team and the operational teams. Once things close, that's a green light essentially their teams to feel comfortable to open up the books, have conversations, open up things like the data for us to get visibility and for us to be more in depth around our vision sharing over and above what we've shared with the market externally. And then we talk about things like the tagline of the brand and start that train in motion. 6 months on, we've generally got a really good understanding with the data, the culture is starting to align and we start to look at things like proof-of-concept changes to technology. But then we've got some tech involved in terms of platforms testing with people and culture, different ways of working that we're experimenting with them and things are generally just moving on a trajectory. Mindful that if we've got earn outs in place, there's also usually a limitation to how hard we can push these things, but we're laying all the foundations so that we can really get off and running quite fast as a succession plan the sellers comes into play. And then Phase 3 is usually around about once that succession plan is formalized. The founders have found a rhythm in terms of whether that's internal, external or the business. We've got proof-of-concepts about technology. We're getting understandings about the right decisions moving forward. And we've got longer-term growth players in market. So that's the playbook that we're operating to and we're seeing good results from the businesses so far. So on that journey so far, like I said, Oz Lotteries and TMS was the template. We bought was a relatively small business at the time. It says there $19 million in TTV, but of digital TTV at the time was only about $3 million. So we were very patient, as Xavier said, in regards to technology, things like that. We listen, we learn, we understood the market, we understood the people. We added value as we could. And in due course, it evolved into what Jumbo has become today. So we're applying that with each of the businesses. And we've got 3 fantastic businesses there, which all can receive value from our senior leadership group as well as our technology. Some early observations of what we've seen so far. We're seeing new client opportunities. So in the U.K., for example, we've got Gatherwell at the lower end of the market. We've got StarVale at the top end of the market. Both of them have had in the past clients coming through them that aren't a right fit. And we've obviously referred to other businesses to do certain things. Now that we've got both ends, we can refer within the family. We've got gaps in the spectrum in regards to those. So we can also address the smaller and larger. There's very different jobs that get served from a Gatherwell client as opposed to StarVale client. And that's something that as we scale out, we're going to be able to address that full spectrum across the regions. Faster in shared learnings is a really important one, too, in the sense that we're able to offer things that we've tried before to our acquired entities that perhaps they may not have had the time to do or they haven't sort of hit that in their road map. And another limitation to that is their tooling, being perhaps private organizations constrained by investment capital, they haven't had the capital to go and invest in tools like Amplitude, [ Looker, Braze ] or that sort of thing, which means that we can offer those to them for easy wins and long-term value generation at like a far more effective, cheaper cost as well as the knowledge with it in terms of how to use it. And then the other big observation is faster product market fit. So it's always hard to start a business from scratch. And obviously, we're seeing some very well-established businesses in place now about we've got a head start in terms of getting into a scalable place that we can deploy our platform or the knowledge that we've got, which spread. And then incremental BAU investment, that's sort of thing to us. It's so important to keep the business on the path that it was on before we acquired it. And then all the value add in terms of our longer-term plans. It's an incremental thing over the top, so that we add to it. So it's one of the graphs like Mike's TTV one earlier, which is before Jumbo and then we're above it. So some key integration priorities where we lay. We're in different phases in terms of closing earn outs that sort of thing. But Gatherwell is the most advanced. So from Gatherwell perspective, we're looking to proof-of-concept, transition over portions of the player base and client base onto PBJ, onto the Jumbo platform. And that's looking to be by the end of this year. We'll conduct a pilot of that. Data will dictate how much heavy we go with that, but the expectation is as we apply growth marketing, all the tooling and everything, is there a significant upscale opportunity there given the size of the charitable market, we're talking hundreds of thousands of organizations. Stride and StarVale, very similar organizations in what they do. So there's a lot of [indiscernible] also in terms of the tenure within Jumbo organization. So we've got things like platform discovery, we're planning how we do proof-of-concept. We've got access to their data, which we're arranging the people and culture motion, a lot of listening and learning. We've had staff and senior managers over in Canada, over in the U.K. already on all of our businesses, and we've got some over there now, which are doing this right now as hard as what they can within the context of where we are with earn outs and closing. And then we've also got with StarVale, it's a unique opportunities there with it's got DDPay, which is a payments facility that we think that there might be some opportunity to scale. And it's also because we've got low end and high end within the market, we've got cross-sell opportunities and collaboration there between Gatherwell and StarVale. So really exciting, where we are. Hopefully, that gets you a good run-through of what we sort of deemed out our playbook and our blueprint for acquisitions. So I think the main thing that we're always finding is that it's about aligned outcomes. It's in touch, it's not just about with clients. It's also in businesses that we're acquiring. So I'll now hand over to Richard, who will give a run-through of our global lottery operations. Thank you.

Thanks, Brad. Hi. I'm Richard Bateson, I'm the Chief Commercial Officer. I'm joining you from Toronto where it's the evening. I joined the company in 2020, early 2020 to advise on the U.S. and global lottery market, so government, and I joined the KMP in July 2021. Today, I'm just going to give you an overview of the global lottery market. It's on our second priorities behind the work that the team has been sort of explaining to you up until now. But it is a market we're monitoring. So outside of Australia, it's a market that we see very much being an opportunity but one that we are looking for certain dynamics to come to before we're getting to place a sizable bet in the market. So just looking at the market itself, from a U.S. dollar point of view, it's about $350 billion. It represents 1/3 of the total global gaming market. And it's actually a market that's relatively resilient. This normally gets up or down by no more than 5%. It's not one that sort of crashes away. Indeed, actually, we have seen quite substantive growth, 5.5% over 5 years. And as you see from this slide, actually, Outside of the U.S., it is a predominantly draw game characterized market. So here, will be 2/3 of the market is draw games and 1/3 sits as scratch cards or instant. That's important when we compare it to the U.S. market. So going on to the next slide. As you see here, what are some of the general characteristics and trends that we're seeing in the market at the moment? Well, with digital native becoming -- digital native is becoming more prevalent and consumers in general becoming more convenient to that. We're seeing changes in consumer preferences. So this world whereby you go to a big box retail and you would go and buy a scratch card or you go and enter into whatever card or draw, whatever it may be. And you're having to that in retail, the world is moving away from that. And that is actually starting to bring more increased pressure on lotteries directors and lotteries to innovate. And we're seeing this happening more and more as offices are looking to become more digitally focused. We're seeing that the world is becoming a digital out business is not far off that. I will never say that retail will not exist, but there is an increasing pressure to have a sustainable digital program at many lotteries inside the industry. And indeed, that's been accelerated by COVID, what we have seen in places like Europe, double-digit shift in channel mix towards digital. You're now seeing mid-30s in most European countries. The U.K. itself is mid-40s. And even in Scandinavia, you're finally see a predominant digital versus retail landscape. And Europe's sort of been a pioneer in this area and the rest of the world sort of follows up and we'll look at the U.S. in a moment, whilst it's a laggard behind, we do believe that, that will start to change. We're also seeing that this sort of oligopolistic view of the market is starting to move away. There's more fragmentation coming here. Now that's happened in Europe for some time with operators themselves wanting to take greater destiny over their technology. But what we're starting to see even in the U.S. as well as in other markets that actually the dominant of the IGT Scientific Games and the entry loss falling away. Indeed, in 2014, we saw with Michigan, NeoPollard coming together to actually bring in a new technology into iLottery. And we've seen other examples of that happening. I'll go into it in a moment. And the final trend that's happening is, well, just a focus that most companies have on ESG but actually focus on player protection and responsible gaming. And actually, this is happening much more in Western Europe and is starting to hit into other parts of the market, indeed, in Australia as well. But those are the 5 trends that we're seeing globally. So now let's focus on the U.S. market. So clicking over a couple of slides. If you look at the totality of the U.S. market, it's broadly $100 billion in size. It's CAGR is higher. It's at 6.2% versus the 5.5% that has typified the general market. But if you look at the chart, what you're seeing is that instance is fueling that scratch cards are fueling that. And that's being fueled by higher price points being adopted by lotteries with very small competition for the lottery dollar in the U.S., and that is changing. I'm going to talk about headwinds in a moment. But if you look at it, $65 billion has seen almost 8% 5-year CAGR increase, and that in itself feels quite unsustainable. And in particular, when you look at cost of living, if you look at sports betting there is a feeling that the countercyclical nature and the relatively robust growth that's happened in the U.S. will just continue year-on-year-on-year. It was a feeling now that sports betting, cost of living, lack of stimulus checks going into market, '22, '23, '24 will be harder trading conditions and will require more innovation and actually we'll start to see, we believe, a wider focus on digital. And actually, we spoke about sports betting. On this next slide, go into the fact that it is believed or forecast by the end of this year, 80% of states review to the pass legislation or will have sports betting operators in market. Why is that important? A lot of commentators believe that the lag of iLottery behind sports betting will be somewhere between 9 and 18 months. And therefore, that is the current expectation, and that is a dynamic that we're monitoring and selling at Jumbo. But I speak about dynamics. And what are the 5 dynamics that we are looking for before we think it's right to have an absolute push into the U.S. market. And we're monitoring, we will look at RFPs, and we will look to ensure that we have a team ready to respond but we've generally look at these 5 things before we place a big bet. Evolving regulation. Yet, today, there's only 14 states that either have or operations -- iLottery operations or have passed legislation for a iLottery. The 2 -- there are 12 operating at the moment, if you include New York, and its subscription program with West Virginia and Connecticut having passed legislation or run an RFP, but have not got the operations yet. We believe in Ohio, Maryland, potentially even going full in New York and potentially in Indiana, there will be more over the next 6 months or so, but that's growing and growing and growing. And we believe that once we get a critical mass of closer towards half, we've got the sort of evolving regulation the standardization we want to see. And actually, we also want to see increased competition. We want to see a market being created by having the nonstandard oligopolistic vendors in what's a relatively constrained market into a market where you've got more video games. You've got the likes of [ Rush Street 2 ] rumored to be in Connecticut. Instant Win Gaming, Jumbo will be and can part of that, we'll be looking to have more and more competition because best-of-breed will mean that we are in an advanced state to capitalize. Spoke about standardization. Mike spoke a bit earlier about replication. Our model is quite simple. Our strategy is we maximize what we have in Australia, we look to replicate that in other markets, particularly in the government side. And so therefore, taking the Oz Lotteries model into this market is going to be really critical. And we want to be in a position where can do 1 deployment and then we just replicate, replicate, replicate. NeoGames with Pollard and Pollard started out with Michigan, which started to replicate that out into New Hampshire and Virginia, but more replication standardization is another characteristic we want to see. We're starting to see fragmentation of the traditional vendors, and we're starting to see more interoperable platforms whereby you can have any content being hosted on platforms. You can plug in any CRM or any sort of promotional vehicles. We want to see more of that, that plug and play in the interoperability is going to another critical point. I think the final area and government relations isn't something we talk about too much, but it's a very costly way to insert yourself and influence the right outcome in many, many bits. We want to see that virtually eliminated. The notion that we are best of breed to be what is dictating us being successful in RFP and therefore, less reliance on GR and government relationship is going to be critical. And for us, those 5 dynamics are ones that we are constantly monitoring to see what changes. On this next slide, I just wanted to quickly demonstrate the vendor landscape and the fact that if you look at the vendor landscape itself, it is less dominated than it was many years ago, and we're seeing more best of breed entering into the market, whether that be through courier or synthetic, into eInstants, iLottery. When you get outside of the traditional lottery and into digital, there is much more competition, and that is what we see to be important because if we are, and we are good at what we do, we have the propositions to be actually entering into an open and competitive market rather than being a constrained and policy-led one. On this next slide, when we decide it's time to go, well, there are 3 ways you lend to any market. You get a partner, you can build or you can buy. We're in constant dialogue with vendors and stakeholders, and we have partnership options that we can explore when the time comes if we want to enter. We can also build, go into some of the expertise that we have, but you'll see from the platform we have today and the proven nature of what we do to be able to go and deploy that and organically grow business is not something that is going to be possible for Jumbo to do. We have great credentials, and it is an area that we will also look at as part of our go strategy. And then finally, buy. There are certain options out in the market, and we do have a constantly reviewed set of targets that we would look to use. But again, the dynamics will dictate, which of these 3 tactics we're looking to market. So my penultimate slide, our value proposition versus the competition. Well, look, this is just 4 simple statements, but 4 that ring true to me. Our speed and agility is second to none, and it is something different to the wider market, a market that looks to be in place within 12 to 18 months from a standing start but actually does take a lot longer than we feel we can deploy a market. We're more efficient and therefore, we can provide better cost models for states and therefore, helping them with their returns to their stakeholders. Look, we've got a proven retail model. And when I have go and talk at a lottery directors about what we do and how we do it. I've always been given an open and positive reception as lotteries a pretty good table stakes to us to be taking into discussions, but the fact that we are proven as a capability should not be underestimated. Proven nature of what we do is what lottery want to have. They won't take big risks on vendors or partners given the sheer size of revenues associated. And then finally, look, we've had it with Brad, you've had Levi and Mel speak about what we do and how we do it. We are proven in these areas. And once -- and I'll never forget a key stakeholder in the industry turning around to me and say the thing they like about Jumbo is it's all about the players. It's not about the company. We make sure that we get the outcomes right so we can be maximizing the opportunity there. That resonates and that is something that is one of our advantages, I believe, when we will go into the market and be able to not to show that we've proven, we're quicker, we're more efficient but we can actually maximize the opportunity. So my last slide here, just credentials, being British, if I'd like to talk myself up. But Mike, Mike is very well regarded with inside WLA and APLA. And actually, Mike was one of the reasons why I wanted to join Jumbo. He's a leader proven in the industry and someone who I admire but also what Jumbo has done really does give us a very good leadership set be entering into the government space. Myself, I've been in the industry for 20 years across U.K., international and both B2C, I set up EuroMillions, was its formerly as President, and I also won B2B contracts in the U.S. and also one of private management contract in Ireland. And then Steve Davidson, finally has worked on B2B, B2C, is a very well-regarded corporate strategist, and someone who understands insights and the way in which we will need to be entering market. So whilst it's not a go at this point in time, we both have the technology, the provenness if that's a word, and also the capabilities to be able to enter the market once we see some of those dynamics shifting. So that's it for me. I'm now going to pass across to Dave.

Thank you, Richard. Good morning, everybody, and thank you for your time today. As usual, the best has been left to last. My name is Dave Todd, and I'm the CFO for Jumbo, having joined the business nearly 15 years ago. Slide 92 reiterates the by now familiar financial framework and profit and loss drivers of the current business segments that we transitioned to in financial year '21. Actual figures for '21 are attached in the appendix to the presentation for your easy reference. Until then, Jumbo was essentially a single business segment being lottery retailing, utilizing its own in-house proprietary lottery software platform. Over the years, we had been approached by lotteries wanting to use our software, but it had its idiosyncrasies and wasn't really in a position to be operated on a hands-free basis. However, this changed when we entered Germany and we essentially treated this business as an external SaaS customer, which included a complete rewrite of the lottery software platform, as mentioned by Xavier. This allowed us to then license the platform and to develop the SaaS and managed service business segments that Mike discussed earlier in the presentation. Sorry. Slide 93 details the large jackpot environment. For the first half, the actual number of large jackpots was 23 with an aggregate of $870 million and an average of $37.8 million. The second half year-to-date, May, we've had 16 large jackpots with an aggregate of $740 million and an average of $46.25 million. The second half so far, has been somewhat mixed with January, February and May, having relatively high activity, including a peak of $ 120 million Powerball in February, which did benefit from some latent demand with the last jackpot over $100 million being in September 2019. Unfortunately, this was immediately followed by a period of lower jackpot activity in March and April, which only saw peak jackpots of $20 million in each month, limiting our opportunity to engage with the new customers from the large jackpots in February. Looking ahead, June can have an aggregate minimum of 0 and a maximum of $140 million, which is 4 large jackpots at an average of $35 million. So pleasingly, the acquisition of Stride completed on the 1st first of June, and we still anticipate StarVale completing by 30th June this financial year. So Slide 94 provides the 12-month management trading figures for both businesses, which continue to perform in line with expectations of around mid-single-digit revenue growth. Slide 95 shows our continued balance sheet strength on a 31 December '21 pro forma basis after considering some key cash flow events including the available new senior debt bank facility. As can be seen, we continue to maintain a healthy cash position at group. I'll now hand back to Mike.

Thank you, Dave. This will just take a minute going to reiterate a couple of investment highlights about Jumbo before opening it up to Q&A. So get your questions ready. So first and foremost, we are a pure-play digital lottery specialists. There's a lot to like about lotteries. There's even more to like about the digital side of it, and we've stayed away from other areas of the industry. And hence, we see the #1 factor as being a pure play digital lottery specialist. Our growth is underpinned by a structural shift to digital lotteries. Having this type of consistent growth doesn't just happen. There's something that's making that happen, and that's the structural shift, which is just continues to march on and on. And thirdly, the scalable financial model, we are very conscious of the importance of scalability and we're trying to build it into the business at every level to make sure that as the business continues to grow, the financial results will follow. We certainly learned this lesson in the early days when we spend a lot of money on the system, thinking I hope this thing grows, it certainly did. In fact, it grew faster than we anticipated. And we -- and in hindsight, we wish we had invested a bit more, we would have made more out of it. So we certainly believe in the growth and we're just making sure that we get it right, so we maximize the scalability. Well, I hope you found the -- our first investors forum beneficial, and that it did bring Jumbo to life in a very meaningful way. We certainly come a long way over the years, but it's certainly not at the end of the path. In fact, in my mind, it's just beginning. As I said in my opening, I had a strong belief that software and the Internet will continue to get better. That hasn't changed. I still think that, that's going to continue to be a major driver. Technology will be an important driver in the lottery industry. And that's what gets me out of bed in the morning and come to work and to see the success of Jumbo. So on that, I'll open it up to Q&A.

Everybody, thanks for your patience. And as Mike said, we'll now move to Q&A. We'd like to start off with questions in the room, and then we'll move to online. [Operator Instructions] And Alex, you're the first.

It's Alex Mees from Morgans. Just with regard to the U.S. first up, I think Richard said that there were 12 states that are currently operating iLotteries. Is there an early mover advantage here that you're in danger of missing if you don't operate over there quickly? And with that in mind, are we thinking about this as a 12-month time horizon, 3 to 5 years, more than 5 years, what should we be thinking about?

Look, I'll see if Richard wants to add any more comments to it. But I don't think there's anything to be gained by rushing into the U.S. market. It's still settling down, there's a lot happening on the sports betting side of things. It's been my ambition again in the U.S. for quite a while now. I first went to the U.S. about 6 or 7 years ago. So we've certainly tried to get in, in the early stages. But I remember being cautioned by some of the industry seniors about the pace of that this will roll out, just to be careful of that, and certainly that, that advice has been true. So we need to make sure it has a good product fit with what we're capable of doing. Last thing I want to do is to go over there and make a mess of it and ruin our reputation. It is a large market. I think that there's -- it will have positive benefits to Jumbo if we're prudent about the whole thing and not just rushing in like a bull at a gate.

Mark Carew from WILSONS here. Just interested in DDPay. I realized you haven't got StarVale this year, the keys to it. But have you ever tried to develop your own payment solution? How good is DDPay? Where could that be in, say, 3 years' time?

Yes. DDPay has got a lot of potential. We have thought about it. I'll probably let Brad or somebody else do a bit more talking about it. But when we first looked at StarVale, obviously, they've got some great client list and a great profitable business model. And then we uncovered DDPay. So we had a good look at that. And we liked what we saw. There's some applications to that with Gatherwell and some other areas. They have got the scale to have something like that work. So we think that's something that can be exported or at least learned from.

Yes. It's been developed by the team over there to serve the need of their existing clients, which was the direct debit part of the market is huge. So for them, it was easier to develop a process and a platform themselves for their own clients that was more cost effective than external vendors. And what they're starting to see now is that that's opening up opportunities to get more clients in the charitable lottery market that otherwise wouldn't have used the services of the management side. And it's also the broader charitable market too, given you where things are out with that. So there's not so much a 3-year forecast or anything like that, but there is definitely an upside in terms of that SAM that we're playing within where we've got the capabilities now in Jumbo joining with StarVale means that we can apply things like the interfaces, more of that online experience from boarding clients and managing how they operate their direct debits and then even further more than that, opportunities for the card payments side of things in the sense that there's a number of partnerships with the card vendors out there that you bring the 2 together and it actually gives a value add for the charities because they've got such a need to be more efficient. Every dollar they save the dollar that goes towards good causes. So that's part of the discovery process at the moment that we're actively looking in but it was interesting Lottery Council event but we also attended with StarVale last month that these sort of things pop up in terms of having a broader net of conversations that we've got clients, they've got clients. These things tend to just sort of perform into a good trajectory for us. So it's one that will be interesting to watch.

It's David Fabris here from Macquarie. I've got 2 questions. Can we first start off with Lottery West? I know you touched on it in the presentation, but can we hone in on where the opportunity lies there? I mean you spoke about the fact that there's circa $1 billion market, it's 18% digital penetration, which materially lags other states. So how does Jumbo participate with Lottery West? And with that as well, can you touch on how that joint marketing is tracking, if you can give some insights there will be helpful.

So Jumbo represents about $30 million to-date. And so we're off to a pretty low in terms of the overall percentage, but we're at least up and running. So the first cave of the rank is this joint marketing initiative. It has been delayed a little bit, just getting things set up with Facebook and Google. It is notoriously difficult working with them, getting things set up, that often large faceless organization is difficult to get things done. So we're still at the starting line with that. But we are getting signs that things are getting closer. Once that kicks in, and it will eventually, we'll then be able to grow that market, that $30 million that we're currently earning 9.5% on. And because it's materially lagging behind the other states, it should rise pretty quickly and then catch up with the pace that the rest of the country is running at. Then there's the publicly-announced RFP that they'll be putting out in the next few months. The details haven't come out exactly, but it's an opportunity for us to take a much more broader role on the digital side of things where perhaps we could take over their entire website and app going forward. So there's opportunity to grow in terms of bringing people on and also grow our capabilities and our role with Lottery West. And as I said, the fact that we're working with Lottery West is a great reference client for everything else that we do. So we're absolutely keen to make sure that one works.

And just to be clear there, you're getting 9.5% currently, but if you were to take on the whole platform, would it fall into that circa 2% to 4% piece?

Yes, probably. We're getting ahead of ourself, but obviously, it would be at a newly negotiated rate depending on what we would be required to do, and that hasn't been determined yet. So it will be in line with whatever we're required to do, it will be software only or there will be other components as well.

Okay. Great. That's helpful. And just a follow-up question on the U.S. market. I mean if we look at that market within the iLottery space, I think 85% of volumes are eInstants. You guys have a lot of expertise in draw-based games. So if you were to move into that market, does that mean you're open to eInstants products? Or do you think that you can partner with someone else to enter jurisdiction and just focus on the draw-based component?

Yes. I'll let Richard add a bit more. But we are a draw-based game specialist. We can do eInstants, but certainly not to the same level as the specialist. So there's probably opportunity to partner in that area, depending on what the state lotteries really require. Sometimes they just want best-of-breed. They're not interested in us partnering and sometimes they do. So...

If you want me to add in there, Mike. Yes, I would say that platforms provide the -- effectively the platform from which content will be provided. We're seeing now a lot more that particularly into gaming site pay or others. They've actually got an open sort of arrangement whereby the best content is actually has to be provided by the platform provider. So there is no exclusivity for IGT, Neo or anyone else going into that market, they have to open up their [ intent ] content. So for us, we'll be partnering as well as looking to provide content ourselves.

It's Matt Ryan from Barrenjoey. Just curious on how you're thinking about the pace of offshore acquisitions at the moment. And whether we should think about as you digest these acquisitions whether you can actually speed up and grow quicker? Or are you sort of finding your feet a little bit with how you'd like to think about that?

There's certainly no shortage of opportunities out there. As Brad mentioned, we're developing a blueprint. We've got 3 under our belt. I was -- wanted to make sure that we're on the right trajectory before going a bit further. So I wanted a bit more work done on the integration side of things. The last thing I wanted to do was to find that something was not right, and we've already bought 5 or 6 businesses that we would have to unravel, which would be a good thing. So I wanted the integration process to mature a little bit more. It has. It's all gone in the right direction. We've had learnings along the way, which I think will help us in deciding which businesses to go after, how much to pay for them, how to structure the deals and things like that. So we certainly learned a lot more. So yes, at some point, I wouldn't mind to accelerate that a little bit more. Our balance sheet is good. And so we've got no issues there. So yes, we're probably integrating at the moment, looking to accelerate in the not-too-distant future. Brad, do you want to add anything to that?

I think Mike summed it up quite well. From our perspective, we've got family of very healthy businesses now. But through those principles that I said, they correlate across other acquisitions. So we often ask why we're buying businesses and it needs to sort of the market access or new capability, that sort of thing. So at the moment, we're pretty comfortable we've got a good foundation to scale from. And that light of why we're buying has to come up in sort of some reviews soon around next half.

Certainly being in the business for over 20 years, we haven't always got it right. And I'd like to think that we have learned from past mistakes. And so that always comes up in our discussions to say that let's not -- let's learn from past mistakes to make sure we get it right this time.

In your slides, you had an interesting chart on the cumulative revenue from new players and you sort of showed how much money that the new players spend from year-to-year. Just hoping if you could get some color on sort of the quantums or I guess even just at a high level, what you see from players as they progress through the years and maybe if you could just comment. I mean I think the chart goes for about 4 years, which is helpful, but what does the longer-dated player profile look like?

Yes, it pretty much follows that same profile. Brad, but you might want to add a bit more to it. But we're certainly seeing players when they come in, they're a little bit hesitant. They just start small and then they build up. But it also is jackpot dependent. There's nothing you can get around that. When the jackpots are low like they have been on these past few months, they do go dormant. They haven't been lost. They just mean that they're just sitting there waiting for the next big jackpot when it comes up, then they step back into gear and off they go. But Brad has been following that for quite a long time. You want to have another crack?

Yes. I think that all the investments we're doing in that nature and nurture work that Mel touched on is improving that retention curve that generally, the more we're at it, the more valuable those players are. It's always rewarding to see somebody from like 2003 or 2004, ticking up in some of this data. So that's sort of thing that we don't release obviously, those long-term amounts because it's very hard to give a baseline in terms of when we put figures out, and that's why we run with the annual numbers. But it's relatively stable in terms of behaviors that people go about, and that's where we're applying the growth mechanics over time to introduce them to new things like Lotto Party, introduce their friends, viral mechanics on top of it so that we can release the value that or over and above just spending more money.

Back to Alex.

This is Alex Mees from Morgan, so I'll hang on to the microphone this time. Just with regard to customer acquisition. Just wondering what your experience has been of customer acquisition through platforms like Facebook if the IDFA changes. And also, I suppose what proportion of new customers do come to you direct rather than going through social media or Google?

Yes. Look, IDFA hasn't had the impact on us as it has in other companies, just simply because of the nature of lotteries. So it is something we monitor, but it hasn't had that much of an impact. Lottery purchases a lot more impulse buy. But maybe I'll leave Brad to talk about IDFA a little bit more.

Yes. Attribution has always been a moving target. When we first got into lotteries, digital marketing at scale. There was nowhere near the amount of attribution that was available that is today. So we came up with common sense ways of actually measuring return on ad spend that I wouldn't say is immune to attribution, but changes like IDFA, it's a very limited impact in terms of the upside that we've got. We've found that we're only scratching the surface like Mel said, around opportunities to go after. So IDFA is about very, very granular sort of following behavior and trends. We're still dealing in a lot of low-hanging fruit out there, but we haven't had any noticeable impact. If anything, we've probably seen an uptick in our mobile campaigns for the last quarter, which I think I saw an analyst note -- that have noted that in the download stats.

And then just second and finally, a broader question around the discretionary nature of lottery ticket purchases. I think Richard mentioned that it has historically not been that sensitive to the economic cycle, but it is still a discretionary purchase. Two prongs for the question. Firstly, what are your thoughts about what it looks like in a more difficult consumer environment that we're clearly coming into? And then secondly, I wonder if there's a different set of behaviors that you can identify with digital customers as opposed to those who go through off-line channels. Do they acquire a ticket more frequently, for example, are they less likely to be impulsive and, I guess, in past purchase?

Yes. I can tell you from an Australian perspective, and Richard can comment on an international perspective, but the lottery industry has been very resilient to any downturns. I recall some of our best growth came through the GFC. Put it down to whatever you like, human nature or whatever, but it's simply because it's not a huge part of the daily budget. They're just playing a participation game. We sell dreams, we sell people's tendency to help charities, that type of thing. It's not $100. It's not thousands of dollars. It's a price or a cup of coffee, really. It's just the regularity of the whole thing. People get into a bit of a habit and they don't pull back on lottery play during downturns. Richard, looking from an international perspective, is that pretty much what we see around the world?

Yes. I apologize my Internet is in and out. Ultimately, draw games are a lot more resistant than, say, scratch cards where the higher value and more money and the more instantaneous nature of it, what have an impact, I think, cost have an impact on it. What we do in draw games will not have -- will not be impacted as highly. And we've seen that in -- or I've seen that in Europe and also in North America when it comes to that category games. So I'd imagine Jumbo to be in a pretty good place.

Alex, we've put a chart in the appendix as well mapping out lottery sales since 1990. So you can have a sense of the trajectory over there.

I'll replicate that for a minute.

Any other questions in the room?

Daniel Martin from Alvia Asset Partners. I just have a question for the team, obviously, about how you're seeing the change of ownership in key competitors, not only just in Australia but also abroad in the lottery market and what are your thoughts around those are.

Change of ownership in...

So you got TLC spin out and then over in the U.S., you've had Scientific Games sell off their lottery business to Brookfield.

Yes. Look, it's -- a lot of these changes have been shareholder driven, not industry-driven. It hasn't been because the operations have struggled in any way. TLC, that's a pretty well-known story. It was just about giving shareholders the ability to own shares just in a lottery type of company. Scientific Games had a large shareholder that wanted out type of thing. But it's not been operationally. So it's got nothing to do with operations is my main comment on that area. And the lottery industry will continue to be a pretty prized asset class. It doesn't matter where you go in the world because of the stability and the long-term growth nature of infrastructure that doesn't get impacted by COVID, all that type of stuff. So at various points. I'm sure there will be changes around the industry because of those fundamentals.

And so a follow-up, that's right. Different sort of area around your higher quality players, you know that the cost per lead has sort of been increasing. Is there some indicator of a cap that you'd be willing to spend to chase these high-quality players?

Why I guess we work on a return on ad spend mechanics. So the actual cost can be quite variable and that return can still be the same. So we worked the return. And so externally, you'll see that going up and down. But we're working on that return profile over the year. And any material change is something that is decided amongst as a group, and there's nothing in the future that we've decided that needs to get changed. So market-wise, everything seems to fit here into what we need to keep the growth loops that has been.

Any other questions in the room? Ben?

Ben from Morgans. Just maybe a very broad question around tech. As we did the walk forward to Web 3 and that decentralized sort of aspect on blockchain, are you guys thinking about that at all?

Yes. I'll let David talk a bit more. We've seen all the fads come and go. Some of it's stuck, some of it hasn't. Part of the art is picking the right one. And sometimes, you just got to give it a go and be prepared to trash it if it's not working. But -- Xavier.

We are monitoring closely. Haven't found yet something that we think is worth really going after. But as I mentioned in my slides, the JumboLabs would be one of the avenues through which we experiment with it. Yes, I was at, at this point, not a huge need to really invest into it yet, but watching closely because it goes fast when it does.

I think also from a player perspective, we have all those insights coming in around jobs and opportunities to solve on their behalf and these technologies are a means to solve those jobs or adjust an opportunity. So when we sort of monitoring those, things will come up. We've got the labs that Xavier touched on that that's an example of being able to sort of see a trends jump on it rapidly prototype and cast to decide if it doesn't work, but I touched on it earlier there's lots of these different things that have come up over the last 10, 20 years that we've looked at and it hasn't sort of fit that return profile or that security that we need in a regulated environment.

One of the things that we're not hearing from players is a lack of credibility, a lack of trust. So why would we throw in blockchain, if it's not something that's an issue to us. So we're a little bit sort of neutral on what blockchain can do for us.

If there's no more questions in the room, without a couple come online. I will just read them out. The first is from Rohan Sundram from MST. Hi Mike, how do you allocate your staff effort across SaaS and managed services customers. As the customer base grows, will you need to staff up accordingly? Or is the existing capacity to manage this?

I'll probably point to Brad's slide, which showed our TTV going up at a lot faster rate than our staff numbers, and that's what scalability is all about. So yes, we do have to increase staff as we get big, of course, you do, but not to the same rate if we're smart about how we go about it. So how do we allocate resources? Maybe this one for you, Dave. Most of our engineers sit in the SaaS division. Any other comments you want to Dave?

Yes. So that's right. 2022 has been a focus on the senior leadership group. Obviously, needed to put a solid foundation in place to make sure that the integrations are a success. 2023, any staff increases around that will be linked to growth. So we obviously have a growth plan, and that means that there are likely to be an increase in staff numbers but they're going to be below the leadership level. It's going to be focused on product technology and growth areas.

One final question. This is from David Charles at CATT Family Proprietary Limited. Can you just -- probably one for Mike, actually. Can you describe the bull case for Jumbo as we sit here today, i.e., what are the biggest opportunities you're chasing? And what might they do to revenues if you can land them? No forecast, just the opportunities you're chasing, please.

Well, I definitely see a day when SaaS and managed services are as big as lottery retailing. It may seem a bit of a big call from where we sit today when you look at the numbers because a lot of retailing such has had such a huge head start. But don't forget that lottery retailing is pretty much limited to Australia. Yes, it will keep on growing quite nicely, but it's getting quite predictable. But when you start -- when things start clicking on the SaaS and managed services side, with what we're doing in Canada, U.K., so things can really start linking up really nicely over there and start accelerating things. And of course, you've got the whole world to go after. I mean, we're focusing on U.K., Canada and the United States, but that's not the only places that run a lottery, of course. So yes, the upside certainly is on that side of the business. So I'm not going to give a time frame on when it's going to be bigger, but I do believe it will be bigger.

That's it for Q&A. I might just hand over to Mike to wrap up.

Okay. Well, thanks very much for your time. And in particular, I'll thank our presenters and especially Jatin for a few sleepless nights and Nikki for putting it all together. So I'll bring it to a close and invite you all for some drinks and nibbles. Thanks very much.