The Lottery Corporation (TLC) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results with revenue up 13.8% to nearly $4 billion and EBITDA up 16%, driven by strong jackpot activity and digital expansion.

• Active registered Lotteries customers rose by over 500,000 to 4.75 million, with significant digital share growth and successful launches like Weekday Windfall.

• Exceptional jackpot events, including a record $200 million Powerball, drove customer acquisition and engagement.

• Delivered a 100% payout ratio with ordinary and special dividends totaling 18.5 cps, and returned $2.6 billion to governments and retail partners.

• Completed key strategic initiatives, including technology separation from Tabcorp and highest responsible gambling accreditation.

Financial highlights

• Revenue increased 13.8% year-over-year to $3,996.6 million.

• EBITDA (before significant items) rose 16% to $827.1 million; EBIT up 16.9% to $718.8 million.

• NPAT (before significant items) grew 21.3% to $411.8 million; NPAT (including significant items) up 56.3% to $414.0 million.

• EPS (before significant items) increased 21.7% to 18.5 cps; total fully franked dividend of 18.5 cps, including a 2.5 cps special dividend.

• Returns to state and territory governments and retail partners totaled $2.6 billion.

Outlook and guidance

• FY25 will see final run-rate impact from separation costs (~$12 million), with no further separation costs expected beyond FY25.

• Focus on delivering seamless, personalized customer experiences, digital transformation, and new product innovations.

• OpEx growth targeted below normalized revenue growth, with optimization activities to release funds for reinvestment.

• Wage inflation of 4% expected in FY25; technology cost inflation slightly above average.

• Early signs of improvement in lottery sales for base games in FY25.