The Lottery Corporation (TLC) H2 2026 earnings summary

Executive summary

• Resilient underlying performance despite a historically low year for large jackpots, a 1-in-45-year event impacting turnover, revenue, and customer numbers.

• Strategy refreshed to evolve from a lottery operator to a digitally-led entertainment platform, with a new operating model and cost discipline implemented.

• 40-year Victorian lottery licence extension materially strengthens portfolio duration, lowers business risk, and secures national operator status.

• Dividend held steady at 16.5 cps (AUD 0.165), fully franked, reflecting confidence in business health and growth outlook.

• Focus on modernizing the entertainment portfolio and expanding the base of known customers through digital initiatives.

Financial highlights

• FY26 revenue reached $3,582.5m (AUD 3.6 billion), down 2.7% year-over-year; EBITDA before significant items was $736.1m, down 1.8%.

• NPAT before significant items declined 6.3% to $342.5m; NPAT including significant items was $284.6m, down 22.1%.

• EPS before significant items at 15.4 cps, down 6.1%; EPS including significant items at 12.8 cps, down 22%.

• Operating expenses reduced by 3.6% to $295.9m, reflecting disciplined cost management.

• Significant items after tax totaled $58m, mainly from ACT Keno licence impairment, restructure costs, and write-off of ACT Keno Prize Fund.

Outlook and guidance

• FY27 operating expenses expected at $305m–$315m, D&A at $125m–$130m, and capex around $100m.

• Dividend policy to shift to 80–100% payout of full year NPATA (before significant items) from FY27, supporting reliable dividends.

• Victorian licence payments of $1,145m to be fully debt funded post year-end, with leverage expected to rise above the long-term target range and plans to de-lever over time.

• Labor savings from operating model changes to be reinvested for long-term growth and digital innovation.

• Strategic priorities include digital innovation, AI-driven jackpot optimisation, and retail terminal upgrades.