The Lottery Corporation (TLC) H1 2025 earnings summary

Executive summary

• Delivered resilient 1H25/FY25 performance despite below-average jackpot outcomes and economic pressures, supported by portfolio strength, customer-focused innovation, and steady base game performance.

• Grew active registered customers and digital share, with strong retail Keno performance offsetting digital headwinds.

• Returned over AUD 800 million to state governments, AUD 324 million in retail commissions, and AUD 2.6 billion to winners, creating 161 new millionaires.

• Interim dividend of 8.0cps, fully franked, maintained with a payout ratio of 101%.

• Ongoing portfolio innovation, including successful launch of Weekday Windfall lottery and upcoming Saturday Lotto and Powerball game changes.

Financial highlights

• Group revenue declined 5.6% year-over-year to $1,779.2m, mainly due to lower jackpot activity; adjusted revenue rose 2% excluding jackpot and timing impacts.

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

• EPS (before significant items) at 7.9cps (1H24: 8.8cps); DPS unchanged at 8.0cps.

• Variable contribution margin improved to 26.7% from 26.3% due to digital share growth.

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

Outlook and guidance

• FY25 opex targeted at $310–320m; D&A at $105–110m; BAU capex at $70–80m.

• Saturday Lotto game change on track for May 2025; Powerball change planned for FY26, subject to approvals.

• Ongoing focus on cost optimization, operational efficiency, and disciplined capital management.

• Customer-focused initiatives include new data platform, retail terminals, and Play for Purpose integration in 2H25.