The Lottery Corporation (TLC) H1 2025 earnings summary

Executive summary

• Delivered resilient 1H25 performance despite below-average jackpot outcomes and economic pressures, with revenue down 5.6% to $1,779.2m and EBITDA before significant items down 7.4% year-over-year.

• Growth in active registered customers and digital share, with strong retail Keno performance offsetting digital headwinds.

• Maintained interim dividend at 8.0cps, fully franked, with a payout ratio of 101% of NPAT before significant items.

• Ongoing portfolio innovation, including successful launch of Weekday Windfall lottery and upcoming Saturday Lotto and Powerball game changes.

• Returned over $1.2b to governments and retail businesses, and $2.6b to winners, creating 161 new millionaires.

Financial highlights

• Group revenue declined 5.6% to $1,779.2m; EBITDA before significant items down 7.4% to $369.7m; NPAT before significant items fell 9.9% to $175.7m.

• EPS before significant items was 7.9cps; DPS unchanged at 8.0cps; dividend paid during the period totaled $233.7m.

• Free cash flow supported $1.2b in returns to governments and retail partners.

• Variable contribution margin improved to 26.7% from 26.3% due to digital share growth.

• Interest expense was $61m, slightly lower than prior year due to reduced debt; average interest rate 5.8% p.a.

Outlook and guidance

• FY25 opex targeted at $310–320m; D&A at $105–110m; BAU capex at $70–80m.

• Saturday Lotto game change on track for May 2025, with increased Division 1 prize and price per game; Powerball change planned for FY26, subject to approvals.

• Ongoing focus on cost optimization, operational efficiency, and disciplined capital management.

• Customer-focused initiatives include new data platform, retail terminals, and Play for Purpose integration in 2H25.

• Net debt/EBITDA target range of 3.0–4.0x maintained.