Jumbo Interactive writes down value of Mexican venture

    Jumbo Interactive said it was writing down the fair value of its venture with Mexican affiliate Sorteo Games from $2.5 million to zero and has instead made progress on launching its own lottery website in the country.
    Jumbo teamed with Sorteo in 2012 to gain access to the Mexican online lottery market and expected to begin selling tickets by the middle of last year. However, after delays the company ended its operational accord with Sorteo in March this year.
    “Mexico still represents an enormous opportunity for Jumbo despite the initial setbacks,” Mike Veverka CEO and founder said in a release to the Australian Stock Exchange. “Significant progress has been made in launching our Mexican lottery website to a population of 118 million people.”
    The company said it expects its total transaction value and net profit after tax for the year ending June 30 2014 to be slightly lower than the previous year.
    In Australia the number of customer accounts grew 9.6 percent to 1.72 million, while sales through the company’s ozlotteries.com site rose 4 percent. That’s lower than in previous years because of the higher base from extraordinary jackpots in 2013 that didn’t happen in 2014, it said.
    In Germany the company said connections have now been made to all 16 of the country’s state lotteries, giving Jumbo maximum access to the population there.