Jumbo quits on Manaccom
Another victim of Australia’s online shopping spree?
On 30 January, listed online lottery operator Jumbo Interactive announced to the Australian Stock Exchange that it had appointed Delloite as administrator of its software distribution subsidiary Manaccom Pty Ltd.
The company that created the OzLotteries Website pulled the plug on the disto after mounting trading losses, which combined with extraordinary items such as write-downs, were weighing down the parent. In its 2010 accounts, Jumbo listed a total loss for its software distribution division of $11.7 million, forming most of the group loss of $7.3 million.
The group had acquired Manaccom in 2007 in a diversification which also included the acquisition of accounting software developer Star Systems, sold in November for $1.7 million.
Manaccom’s administration is attributed to poor sales conditions for over-the-counter software.
Late last year, the company – formerly trading in its entirety under the Manaccom banner – announced a restructure in which Manaccom Pty Ltd was split off and the parent company’s name changed to Jumbo. It expects its online lotteries business to pass $80 million in revenue for 2010-2011. ®