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.

• Interim dividend maintained 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 game change.

• Returned over $1.2b to governments and retail partners, and introduced responsible play initiatives such as mandatory spend limits for online Keno.

Financial highlights

• Group revenue declined 5.6% year-over-year to $1,779.2m; underlying revenue rose 2% after adjusting for jackpot and timing effects.

• EBITDA (before significant items) was $369.7m, down 7.4%; NPAT before significant items was $175.7m, down 9.9%.

• EPS before significant items was 7.9cps; interim dividend held at 8.0cps, fully franked.

• Operating expenses rose due to separation costs; significant items after tax totaled $22.4m, mainly from pre-demerger tax litigation settlement.

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

Outlook and guidance

• FY25 OPEX target set at $310–320m, absorbing separation impacts; 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 game change planned for FY26, subject to regulatory approvals.

• OPEX expected to skew to second half due to advertising and new product launches.

• Focus on operational efficiency, cost discipline, and digital transformation.