Jumbo Interactive remains on a strong growth trajectory
Jumbo Interactive has reduced its FY26 EBITDA guidance for recently acquired UK prize draw business Dream Car Giveaways (Dream UK) amid increased investment, market testing initiatives and integration costs as the business transitions from its founders.
The digital lottery specialist acquired Dream UK in October last year in a deal valued at A$109.9m. At the time, Jumbo said the deal fitted in with its wider expansion plans by establishing a B2C footprint in the UK.
Initially, Jumbo forecast Dream UK would generate underlying EBITDA of between £8m and £8.3m during the final eight-and-a-half months of FY26. However, it has now revised that guidance down to £7.0m to £7.3m.
Despite the downgrade, Jumbo said the business remains on a strong growth trajectory. It noted that the revised outlook represented annualised EBITDA growth of 20-25% compared to the £8.3m reported in the 12 months to 30 April 2025.
It attributed the revised guidance to increased investment as Dream UK transitions from its founders to Jumbo ownership, as well as the impact of new market testing initiatives and seasonal trading.
Jumbo also used the update to confirm the appointment of a new Dream UK business head. While the company did not reveal the identity of the new unit leader, it did state that they joined earlier in July. The move is intended to support an orderly leadership transition ahead of the founders’ planned departure by December 2026.
Upgraded forecast for US unit
Elsewhere, Jumbo upgraded its outlook for Dream US. The company acquired the business, also known as Dream Giveaways, just a few weeks after the UK-facing deal completed.
New guidance from Jumbo puts expected EBITDA at between $5.2m and $5.5m, almost double the initial forecast. The company said this was due to an increase in the number and timing of prize draws since the acquisition.
As for the wider Jumbo business, the company maintained its Australian EBITDA margin guidance at 46% to 50%, while its Managed Services business in Canada is now expected to deliver EBITDA growth of 35% to 45%, up from previous guidance of 20% to 25% on the back of new business wins, product investment and favourable campaign timing.
In addition, expected EBITDA growth for its UK Managed Services business was trimmed to around 10%. This was due to higher-than-expected jackpots, although Jumbo said this had been partially offset by cost discipline.
https://next.io/news/results/jumbo-interactive-cuts-dream-uk-guidance/