The Lottery Corporation FY25 earnings: Dividend up despite revenue dip

The Lottery Corporation posted $3.7b in revenue for FY25 and increased its total ordinary dividend by 3.1%.

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The Lottery Corporation Ltd (ASX: TLC) share price is in focus today after the ASX lottery and gaming operator reported $3.7 billion in revenue for FY25 and lifted its total ordinary dividend by 3.1% to 16.5 cents per share.

What did The Lottery Corporation report?

  • Revenue: $3.75 billion, down 6.2% from FY24
  • EBITDA (before significant items): $749.3 million, down 9.4%
  • NPAT (before significant items): $365.5 million, down 11.2%
  • Ordinary dividend: 16.5 cents per share, up 3.1%, fully franked
  • Digital lotteries turnover share: 41.8%, up from 40.9%
  • Approximately $2.4 billion returned to governments and venue partners

What else happened in FY25?

The Lottery Corporation saw solid digital growth in its lotteries division, with technology upgrades and a refreshed Saturday lotto game helping retain players despite a dip from last year's record jackpots. The business rolled out new retail terminals, completed its Queensland lotteries upgrades, and improved customer experience with greater personalisation and onboarding systems.

Keno achieved strong retail growth, especially in pubs and clubs, supported by targeted marketing and increased venue visitation. Digital Keno turnover declined following the introduction of mandatory online spend limits as part of a broader sustainability push. The company also deepened its community engagement by integrating the Play For Purpose charity raffle into its digital platforms.

What did The Lottery Corporation management say?

Commenting on the result, Managing Director & CEO Sue van der Merwe said:

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. The defensive characteristics of lotteries were evident, with customer participation remaining healthy, even as players sought value in a challenging economic environment.

What's next for The Lottery Corporation?

Looking ahead to FY26, The Lottery Corporation is focused on boosting revenue through further digital share gains, new game enhancements, and ongoing productivity improvements. Shareholders can expect the full benefit of the recent Saturday lotto price adjustment and, from November, a planned Powerball entry price increase, subject to regulatory approval.

A stepped-up investment in digital transformation and core infrastructure is earmarked for FY26. This three-year program aims to modernise the company's systems, supporting faster new product launches and an improved omni-channel experience.

The Lottery Corporation share price snapshot

The Lottery Corporation share price has trailed the market over the past year, rising 8% compared to a 11% rise for the S&P/ASX 200 Index (ASX: XJO).

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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