The Lottery Corporation (TLC) H1 2026 earnings summary

Executive summary

• Delivered resilient underlying performance despite the least favourable jackpot period since demerger, with a turnover impact of approximately $400m compared to the prior year.

• Maintained interim dividend at 8.0 cps, payout ratio of 103%, supported by strong free cash flow.

• Digital share of Lotteries turnover increased to 41.2%, up 80bps year-over-year, despite low jackpot outcomes.

• Continued strong growth in Keno, with both retail and digital channels contributing.

• Strategic focus on digital transformation, local market growth, and disciplined capital allocation to unlock further value.

Financial highlights

• Group revenue rose 2.0% year-over-year to $1,815.0m; EBITDA declined 0.7% to $367.0m.

• Net profit after tax (NPAT) was $173.3m, down 1.4% year-over-year; EPS was 7.8 cps, down 1.3%.

• Operating expenses increased 2.9% to $146.0m, with disciplined cost management keeping growth below inflation.

• Free cash flow remained strong, supporting a fully franked ordinary dividend of 8.0 cps.

• CapEx for the half was $34m, with full-year target of $90–100m focused on digital and retail upgrades.

Outlook and guidance

• FY26 operating expenses expected between $310m and $320m; depreciation & amortisation $110m–$115m; capital expenditure $90m–$100m.

• Strategic focus on accelerating digital transformation, enhancing base game portfolio, and investing in Keno for further growth.

• Set for Life game refresh planned for September 2026, subject to regulatory approvals.

• Continued disciplined cost management with operating expense growth below inflation.

• Further strategic details to be shared at mid-year investor day.