Highlights:

• The Lottery Corporation reported resilient FY26 results despite historically unfavourable jackpot outcomes.
• Revenue and underlying earnings declined modestly, while disciplined cost management helped limit the impact.
• The Company maintained its fully franked dividend and strengthened its long-term outlook through a major Victorian licence extension.

The Lottery Corporation (ASX: TLC) has told the ASX that it delivered a resilient full-year performance for the year ended 30 June 2026, even as an unusually quiet run of jackpots weighed on turnover across its lottery business. The Brisbane-based operator, which brands itself as "Where Australia Comes to Play," released its FY26 results and investor presentation to the market on 19 August 2026, ahead of a briefing for analysts and media that morning.

Revenue Slips, But Dividend Holds

Group revenue for FY26 came in at $3,582.5 million, down 2.7% on the previous year, while EBITDA before significant items eased 1.8% to $736.1 million. Net profit after tax before significant items fell 6.3% to $342.5 million, and statutory NPAT, which includes one-off items, dropped 22.1% to $284.6 million. Despite the softer earnings, the board kept the full-year dividend unchanged at 16.5 cents per share, fully franked, signalling confidence in the underlying health of the business.

A "1-in-45-Year" Jackpot Drought

Management attributed much of the earnings pressure to an especially unfavourable stretch for major jackpots, describing it as roughly a one-in-45-year outcome that reduced turnover by an estimated $700 million. Oz Lotto and Powerball saw far fewer large-prize draws than usual, with no Powerball jackpot above $100 million and no Oz Lotto jackpot above $50 million recorded during the year.

Key Points of the Result

• Victorian lottery licence extended by 40 years, strengthening long-term certainty.
• Powerball's price rise retained 63% of turnover, while Saturday Lotto held 100% retention after a price increase.
• Keno continued its growth run, with revenue up 3.0% and EBITDA up 6.2% on stronger retail engagement.
• Digital channels now account for 46.6% of turnover, up from 45.7% a year earlier.
• Net debt to EBITDA sits at 3.1x, within the company's target range, with its BBB+ credit rating reaffirmed.
• A leaner operating model took effect from 1 July 2026, alongside disciplined cost control that trimmed operating expenses.

Looking ahead, the company flagged further game refreshes, including a Set for Life price change expected in September 2026 and Oz Lotto changes targeted for the first half of FY28, as it leans on a proven price-retention playbook to drive future growth.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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