Jumbo forecasts up to $4.4m profit for FY11

Internet lottery company, Jumbo Interactive (ASX:JIN), expects to earn a net profit of between $4 million and $4.4 million in FY11.

The company also said in a statement that it expects revenue in the range of $75 million to $80 million.

JIN shares grew 14.29 per cent during Monday's trading on the strength of the forecast.

Jumbo Interactive recently paved the way to wind up its loss-making software distribution division Manaccom, and said its guidance for the year includes one-off costs and losses from this unit.

It was losses and restructuring costs at Manaccom which caused the company to swing to a $7 million loss in FY10. Jumbo Interactive shifted focus to internet lotteries as a result of the run of losses at the unit, and changed its name from Manaccom in November.

The internet lottery business generated $2.3 million in profit in the first half, on revenue of $36 million, and Jumbo said it expects its contribution to grow in the second half.

The company added that it is pursuing overseas opportunities, and in particular wants to break into the $70 billion North American lotteries market and the $110 billion UK and European markets.

Copyright © 2011 IDG Communications, Inc.

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