Lottery Corp Reports 3.1% Dividend Rise and A$90m New Draw Turnover

Resilient Performance Despite Jackpot Variability

The Lottery Corporation has delivered a solid financial performance for the full year ended 30 June 2025, navigating a challenging economic environment and below-average jackpot outcomes. The company reported a 9.4% decline in EBITDA before significant items to A$749.3 million, reflecting a 6.2% drop in revenue to A$3.75 billion. This was largely driven by a 12.9% reduction in Division 1 jackpot game offers compared to the prior year, which had been a record jackpot period.

Despite these headwinds, underlying participation remained healthy, supported by a diversified portfolio of lottery products and a growing digital footprint. The Lottery Corporation’s digital share of turnover increased, driven by enhanced online experiences and a focus on customer onboarding and personalisation.

Innovation and Growth Initiatives

Key to the company’s growth was the successful launch of the Weekday Windfall draw on Fridays, which generated approximately A$90 million in incremental turnover. This new product innovation helped offset some of the revenue impact from lower jackpot activity. Additionally, the company commenced a new terminal rollout, completing Queensland Lotteries and progressing towards digitalisation of retail channels.

Looking ahead, The Lottery Corporation plans to implement a Powerball entry price increase in November 2025, following a high early retention of the May 2025 Saturday lotto price rise. These pricing strategies aim to enhance prize pools and support sustainable revenue growth.

Financial Strength and Capital Discipline

The company maintained disciplined cost management, with operating expenses rising modestly by 2.5% despite the full-year impact of final separation costs related to the demerger from Tabcorp. The balance sheet remains robust, with net debt of A$2.15 billion and a leverage ratio of 2.9 times EBITDA, comfortably within the target range of 3.0 to 4.0 times.

Strong free cash flow enabled The Lottery Corporation to increase its fully franked ordinary dividend by 3.1% to 16.5 cents per share, maintaining a payout ratio of 100% of net profit after tax before significant items. Returns to governments and retail partners totalled A$2.4 billion, underscoring the company’s role in supporting public revenue and local businesses.

Strategic Focus on Digital Transformation and Customer Experience

The company’s FY26 priorities emphasize sustainable growth through digital transformation, operational excellence, and portfolio innovation. Investments include a new customer data platform to enable personalised experiences, continued rollout of new retail terminals, and enhancements to digital membership programs aimed at increasing registered customer numbers.

Additionally, The Lottery Corporation is engaging with federal regulatory reviews concerning online keno and foreign-matched lotteries, while expanding charitable gaming initiatives such as the Play For Purpose charity raffle.

Outlook and Market Position

With a long-term vision to be the world’s best lottery operator, The Lottery Corporation is leveraging its exclusive licences, diversified product portfolio, and strong digital momentum to navigate market challenges. The company’s strategic investments in technology and customer engagement position it well to capture future growth opportunities and enhance shareholder value.