Jumbo Interactive has lowered its FY26 EBITDA guidance for UK prize draw business Dream Car Giveaways, known as Dream UK, citing increased investment costs and market testing initiatives.
The digital lottery specialist originally acquired Dream UK in October last year as part of a deal valued at A$109.9m, with the move designed to establish a B2C footprint in the United Kingdom.
Jumbo had initially forecast Dream UK would generate underlying EBITDA of between £8m and £8.3m across the final eight-and-a-half months of FY26, but has since revised that figure down to £7.0m to £7.3m.
Despite the downgrade, Jumbo insisted the business remains on a strong growth trajectory and that the revised outlook still represents meaningful progress compared to recent performance.
The company noted that the new guidance represented annualised EBITDA growth of between 20% and 25% when compared to the £8.3m reported in the 12 months to 30 April 2025.
Jumbo attributed the revision to increased investment as Dream UK transitions from its founders to Jumbo ownership, alongside new market testing initiatives and the impact of seasonal trading patterns.
The company also confirmed the appointment of a new Dream UK business head, who joined earlier in July 2026, though the identity of the new unit leader was not disclosed publicly.
The appointment is intended to support an orderly leadership transition ahead of the founders’ planned departure from the business by December 2026.
Jumbo’s outlook for its US operations told a considerably more positive story, with the company upgrading its forecast for Dream US, also known as Dream Giveaways, which was acquired just weeks after the UK deal completed.
New guidance puts expected EBITDA for Dream US at between $5.2m and $5.5m, almost double the initial forecast, driven by an increase in the number and timing of prize draws since the acquisition.
The broader Jumbo business also provided updated figures across its other divisions, with the Australian operation maintaining its EBITDA margin guidance at between 46% and 50%.
Its Managed Services business in Canada is now expected to deliver EBITDA growth of between 35% and 45%, a significant upgrade from previous guidance of 20% to 25%, supported by new business wins, product investment, and favourable campaign timing.
Expected EBITDA growth for Jumbo’s UK Managed Services business was trimmed to around 10%, with higher-than-expected jackpots cited as the primary cause, though cost discipline helped offset some of the impact.
