The Lottery Corporation (TLC) H1 2026 earnings summary

Executive summary

• Delivered resilient financial results despite the weakest jackpot environment since ASX listing, with a $400m turnover impact, supported by strong underlying business fundamentals and a robust balance sheet.

• Interim dividend of 8.0 cents per share, fully franked, representing a 103% payout ratio, matching the prior period.

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

• Leadership transition with new CEO emphasizing digital growth, innovation, and license management.

• Strong free cash flow and balance sheet support ongoing investment and flexibility for organic growth opportunities.

Financial highlights

• Group revenue increased 2.0% year-over-year to $1,815.0m, with EBITDA at $367.0m, down 0.7% year-over-year.

• Net profit after tax was $173.3m, down 1.4% year-over-year; EPS was 7.8 cents, a 1.3% decrease.

• Free cash flow remained strong, with net cash flows from operating activities at $219.7m.

• OpEx increased 2.9% to $146m, reflecting product changes and higher employee costs.

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

Outlook and guidance

• FY26 guidance: operating expenses of $310–$320m, D&A of $110–$115m, and CapEx of $90–$100m, with second-half weighting due to advertising, technology, and project costs.

• Continued disciplined cost management with OpEx growth below inflation.

• CapEx to ramp up in the second half, aligned with digital and core transformation initiatives.

• Ongoing investment and flexibility for organic growth opportunities supported by a robust balance sheet.

• Next game refresh for Set for Life expected in September 2026, subject to regulatory approvals.