The Lottery Corporation (TLC) H2 2024 earnings summary

Executive summary

• Achieved record FY 2024 results with revenue up 13.8% to $3,996.6m and active registered customers rising to 4.75 million, driven by strong jackpot games and digital growth.

• Exceptional jackpot activity, including a record $200m Powerball, drove customer acquisition and engagement, with 170,000 new active customers.

• Delivered a 100% payout ratio with ordinary and special dividends totaling 18.5 cps, and returned up to $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 $3,996.6m; EBITDA rose 16% to $827.1m, and NPAT (pre-significant items) was $411.8m, up 21.3%.

• Total dividend per share was 18.5 cps, a 23% increase, with a 100% payout ratio of full-year NPAT (pre-significant items).

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

• EPS (before significant items) up 21.7% to 18.5 cps.

• NPAT (including significant items) increased 56.3% to $414.0m, reflecting one-off items.

Outlook and guidance

• FY 2025 will see a final run-rate impact from separation costs (~$12m), with no further separation costs expected beyond FY 2025.

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

• Wage inflation of approximately 4% expected in FY 2025; technology cost inflation slightly above average.

• Focus on delivering seamless, personalized customer experiences and reshaping digital and retail offerings, including new customer data platform and retail terminals.

• Early signs of improvement in lottery sales for base games in FY 2025.