Jumbo Interactive (JIM) and Healius (HLS)

Hi Peter,

Two very stocks here with the only thing in common, that being they’ve endured a tough time since COVID:

• Jumbo Interactive (JIM): this digital lottery specialist is struggling as the number of large jackpots have declined, this is literally a “numbers game” which goes up and down. However the companies issues run deeper with new customer acquisition falling sharply and increasing competition coming from the Lottery Corporation’s “The Lott” platform. We have no interest in JIN as pressures mount on the business.
• Healius (HLS): HLS’s main operations revolve around pathology, providing diagnostic services that support medical practitioners. The company has been struggling financially, in FY24 they lost $645.8 million, following on from a loss of $367.8 million in the previous year. This poor performance led to the business selling its Lumus Imaging division to Affinity Equity Partners for $965 million. The sale provided a net cash inflow of ~$835 million, it also meant the loss of a business segment that contributed around 27% of the company’s revenue in FY24, i.e. they sold off some of the good stuff.
• Earlier this year HLS paid back a fully franked special dividend totalling $300 million, equating to 41.3 cents per share.
• HLS now derives over 90% of its revenue from Medicare bulk billing which concerns us given its reliance on regulated pricing hence MM has no interest in HLS until we see a definitive turn around.

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Jumbo Interactive Ltd (JIN)

LAST UPDATED 30/05/2025 15:13

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Jumbo Interactive Ltd (JIN)

LAST UPDATED 30/05/2025 15:13