Australia: The Lottery Corporation = Resilient performance powered by customer-focused innovation and portfolio strength
The Lottery Corporation Managing Director & CEO, Sue van der Merwe, commented: “The Lottery Corporation’s result for the half (1H25) demonstrates the strength and resilience of our diversified game portfolio, proactive portfolio management, and the ongoing benefits of our customer-focused innovation.
The Lottery Corporation Limited (ASX: TLC) today announces its results for the half year ended 31 December 2024
(1H25) 1H25 highlights:
• Resilient financial performance in period of below-average jackpot outcomes, with revenue down 5.6% to $1.8b and EBITDA (before significant items)1 down 7.4% on pcp to $369.7m
• Diversified portfolio and effective marketing and customer experience investment drove strong participation, and growth in registered customers and digital share on pcp
• Ongoing focus on costs; 1H25 opex step-up reflects separation run-rate impacts
• Customer-focused innovation continues. New Friday Weekday Windfall lottery draw delivered more than $50m in incremental turnover; Saturday Lotto game change on track for May 20252 and Powerball change planned for FY262
• Strong balance sheet and free cash flow enabled interim dividend of 8.0cps, fully franked, in line with pcp; payout ratio of 101% of NPAT before significant items
• Delivering value for stakeholders, with $1.2b returned to governments and retail businesses
The Lottery Corporation Managing Director & CEO, Sue van der Merwe, commented: “The Lottery Corporation’s result for the half (1H25) demonstrates the strength and resilience of our diversified game portfolio, proactive portfolio management, and the ongoing benefits of our customer-focused innovation.
“We grew our active registered customer numbers and digital share on the pcp and, pleasingly, held onto most of the gains we made during the large jackpots in 2H24.
“This was delivered against a backdrop of 14 per cent lower Division 1 prize offerings across our three most popular games, and economic pressures that saw consumers increasingly seek value and purchase less frequently. The below-model jackpot outcomes are part of the variation in jackpots that can impact volumes in the short term, but naturally smooth out over time.
“We have been pleased with the success of the new Weekday Windfall lottery game, which is resonating strongly with customers. Our next game refresh will be to Saturday Lotto – our second-largest game – which includes increasing the Division 1 prize from $5m to $6m.
“Keno continued to perform very strongly in hotels and clubs where local area marketing and our ‘Together We Play’ campaign have helped strengthen its position as a social connector that brings people together.
Given the Group’s resilient performance, our strong financial position and cash flow, and in line with our disciplined capital management framework, the Board was pleased to determine to pay an interim dividend at 8.0 cents per share, consistent with last year.
“The lotteries market continues to be attractive, delivering uninterrupted, long-term growth, generally ahead of combined population growth and inflation. This, together with the strong fundamentals of our business, underpins our ability to generate strong returns for shareholders through the economic cycle.”
https://wcsecure.weblink.com.au/pdf/TLC/02914402.pdf