The Lottery Corporation Ltd (ASX: TLC) share price is in focus today after the company revealed a resilient half-year result for the six months ended 31 December 2025, with group revenue up 2% to $1.82 billion and an 8.0 cent per share fully franked interim dividend declared.
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What did The Lottery Corporation report?
- Revenue rose 2% year on year to $1.82 billion.
- Net Profit After Tax (NPAT) slipped 1.4% to $173.3 million.
- Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was $367.0 million, down 0.7% from 1H25.
- Operating expenses increased modestly by 2.9% to $146.0 million.
- The interim dividend was 8.0 cents per share (fully franked), matching last year, representing a payout ratio of 103% of NPAT.
- Net debt stood at $2.24 billion, with leverage at 3.0x EBITDA.
What else do investors need to know?
Despite the least favourable period for jackpot outcomes since its demerger, with an estimated $400 million negative turnover impact, The Lottery Corporation delivered a resilient financial performance. Keno revenues continued to grow, up 7% against the prior corresponding period, with a notable return to digital growth after new spend limits were introduced last year.
Digital sales continue to rise, making up 41.2% of total Lotteries turnover, up 80 basis points. The Saturday lotto game change was successfully executed, retaining 103% of the price increase, and active game management helped offset weaker jackpot outcomes.
What's next for The Lottery Corporation?
Looking ahead, the company plans to review its brand architecture and explore new product opportunities while investing in Keno and digital transformation. Strategic technology upgrades, portfolio enhancements, and a focus on local market growth are all expected to support ongoing sustainable shareholder returns.
In FY27, more game changes are planned, including enhancements to Set for Life, subject to regulatory approvals. The Lottery Corporation's strong balance sheet provides flexibility for organic expansion as it evolves as a digital entertainment business.
The Lottery Corporation share price snapshot
Over the past 12 months, The Lottery Corporation shares have risen 5%, slightly trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
