The Lottery Corporation reported steady revenue of AUD 3.6 billion for the 12 months to June 30, 2026, while earnings before interest, tax, depreciation and amortization before significant items declined 1.8% year-over-year to AUD 736 million.
The group’s net profit after tax before significant items fell 6% to AUD 412 million, with jackpot turnover declining 21% as Powerball failed to reach AUD 100 million for the first time in five years and Oz Lotto missed AUD 50 million for the first time in nine years. Adjusted for the AUD 88 million adverse impact from weaker jackpot conditions, EBITDA would have risen modestly.
Operating expenses decreased 4% to AUD 296 million, reflecting cost discipline and lower advertising and promotion spending of approximately AUD 10 million. Significant items after tax totaled AUD 58 million, primarily driven by an impairment in the Australian Capital Territory license and reorganization costs.
Net interest expense increased 4% to AUD 5 million, with the average interest rate on debt at 5.8%. Roughly 75% of debt is fixed or hedged. Leverage stood at 3.1 times on a reported basis and 4.2 times on an adjusted basis, including the cost of the Victorian license extension and jackpot normalization. S&P Global Ratings reaffirmed the group’s BBB+ credit rating.
The board maintained the full-year dividend at AUD 0.165 per share and outlined a new payout policy for FY 2027 based on net profit after tax before significant items plus license amortization after tax. The stock rose 1.98% to AUD 5.42, valuing the company at approximately AUD 8.4 billion. The dividend yield was 3.11% gross, with a gross profit margin of 95.75%. Valuation multiples included a P/E ratio of 32 and a Price/Book multiple of 34.7.
Base games revenue grew 5.6% year-over-year, led by Instant Scratch-Its and Lucky Lotteries, while Keno delivered another record year. Digital revenue share increased by 90 basis points despite weaker jackpot turnover. Retained customers, who account for over 4 million unregistered Australian players, spend roughly five times more than new or reactivated customers and have grown at about 3% annually since FY 2022.
For FY 2027, operating expenses are guided between AUD 305 million and AUD 315 million. Interest expense is expected to rise materially due to refinancing the Victorian license extension at rates above the current 5.8% average. The planned end of online Keno is projected to reduce EBITDA by approximately AUD 25 million on a FY 2026 run-rate basis.
The Victorian license was extended to 2068, aligning with terms in New South Wales and South Australia. Draw times for Powerball, Oz Lotto and Saturday Lotto are being shifted from 7:30 p.m. to 9:00 p.m. Product updates include the launch of PlayPick and Draw Reveal next month, a relaunch of Set Life in September, and a BYOD Keno trial in Victoria in November. Oz Lotto will refresh in the first half of 2028, alongside the introduction of a greenfield AI-ready app. Additional features such as social play, digital gifting and autoplay are slated for later rollouts.
