The Lottery Corporation (ASX:TLC) saw its share price surge 6.99% to close at $5.66 today, after hitting a new high at $5.80 early in the trading session. This positive market reaction followed the release of the lottery operator’s full-year results, showcasing resilience despite a drop in revenue and profit compared to a record jackpot-fueled prior year.
The company reported a 6.2% decline in revenue to $3.75 billion and an 11.7% decrease in net profit after tax (NPAT) to $365.5 million. However, these figures were viewed favorably by the markets, considering the exceptional performance in the previous fiscal year, which benefited from historically high jackpot payouts.
The Lottery Corporation’s CEO, Sue van der Merwe, highlighted the company’s strategic adaptability, stating, “The Lottery Corporation’s portfolio diversification and active management helped to deliver a resilient performance this year, as we continued to build strong foundations for a sustainable future.”
Key financial highlights from the FY25 report include EBITDA (before significant items) of $749.3 million, a 9.4% decrease year-over-year. The company increased its ordinary dividend by 3.1% to 16.5 cents per share, fully franked, demonstrating a commitment to shareholder returns. Digital lotteries continued to gain traction, with their turnover share rising to 41.8%, up from 40.9% in the previous year. Approximately $2.4 billion was returned to governments and venue partners.
The growth in digital lotteries turnover was fueled by enhanced customer experiences, the introduction of new products like the Weekday Windfall draw, and strategic pricing adjustments, including a Saturday Lotto price increase. A planned Powerball entry price increase is slated for November 2025.
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While digital Keno turnover experienced a dip due to the introduction of mandatory online spend limits, the retail channel showed strength, driven by targeted local marketing initiatives and increased venue visitation. The company also emphasized its strong balance sheet and disciplined cost management, supporting a 100% dividend payout ratio.
The company’s introduction of the Weekday Windfall draw on Fridays contributed approximately $90 million in incremental turnover. Additionally, a new terminal rollout has commenced, with Queensland lotteries completed, providing a platform for future digitalization efforts.
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