The Lottery Corporation Ltd (ASX: TLC) share price is in focus after the company announced resilient FY26 results, with a maintained fully franked full-year dividend and continued growth in its Keno business, despite rare unfavourable jackpot outcomes.
Image source: Getty Images
What did The Lottery Corporation report?
- Revenue of $3,582.5 million, down 2.7% on the prior year
- EBITDA (before significant items) of $736.1 million, down 1.8%
- NPAT (before significant items) of $342.5 million, down 6.3%
- Full-year dividend of 16.5 cents per share, fully franked, unchanged from last year
- Keno revenue grew 3.0% to $364.3 million; Keno EBITDA up 6.2% to $109.5 million
- Operating expenses reduced by $11.2 million to $295.9 million
What else do investors need to know?
The Lottery Corporation faced historic low jackpot outcomes this year, with no $100 million Powerball draw for the first time since FY21 and no Oz Lotto $50 million jackpot since FY17. These factors led to notable declines in jackpot game turnover and revenue but were partly offset by price increases and disciplined expense management.
A standout event was the 40-year extension of the Victorian lottery licence, significantly increasing certainty and duration of earnings. This extension also triggered a planned change to the company's dividend policy, shifting to 80–100% of NPATA (before significant items) from FY27, to better reflect underlying cash flow.
What did The Lottery Corporation management say?
Lottery Corporation's CEO, Wayne Pickup, commented:
The Lottery Corporation's infrastructure-like qualities were again evident in FY26, underpinned by our long-dated licences, trusted brands, scaled distribution and reliable cash generation. The recent 40-year extension of the Victorian lottery licence has structurally lowered the risk of our business, extended the duration of our licence base and reinforced our strong investment-grade credit rating.
What's next for The Lottery Corporation?
Looking to FY27, management is focused on driving growth through further digital innovation and product refreshes, including price changes to Set for Life and a new Oz Lotto variant subject to approval. The company aims to expand its digital customer base, launch new retail terminals, and enhance instant-win game offerings.
The business will remain disciplined with costs and capital allocations, targeting $305–315 million in FY27 operating expenses. Strategic investment in technology and customer engagement is expected to underpin sustainable long-term growth, even as jackpot-driven revenues naturally fluctuate.
The Lottery Corporation share price snapshot
The Lottery Corporation share price has moved broadly in line with the S&P/ASX 200 index (ASX: XJO) over the past year, with performance reflecting both sector trends and jackpot variability.
