The Lottery Corporation (ASX:TLC) reported full-year FY26 revenue of $3.58bn, a 2.7% decline from the prior year, as a historic jackpot drought weighed on turnover despite resilience in base games.
Net profit after tax before significant items fell 6.3% to $342.5m, while earnings per share declined 6.1% to 15.4 cents. EBITDA before significant items decreased 1.8% to $736.1m. The company maintained its full-year dividend at 16.5 cents per share, fully franked, with a payout ratio of 107% of FY26 earnings.
Management described the jackpot drought as a once-in-approximately-45-year event, reducing turnover by an estimated $700m. Cumulative jackpot value offered declined 20.9% to $1.85bn, while combined turnover for jackpot games totaled $3.25bn—an outcome with a modeled probability of roughly 1 in 45 years. Powerball failed to reach $100m for the first time since FY21, and Oz Lotto did not exceed $50m for the first time since FY17.
Base games turnover increased 5.6% year-over-year to $3.29bn, partially offsetting a 10.6% decline in jackpot game turnover. Lotteries segment revenue fell 3.3% to $3.22bn, while EBITDA dropped 3.0% to $626.6m. Keno segment revenue rose 3.0% to $364.3m, with EBITDA up 6.2% to $109.5m. The company noted that proposed federal legislation to discontinue online Keno from January 1, 2027, would remove approximately $25m in FY26 EBITDA.
Net debt stood at $2.26bn as of June 30, 2026, representing 3.1 times EBITDA, within the target range of 3.0–4.0 times. Victorian licence payments totaling $1.15bn are due in two tranches—$250m on July 3, 2026, and $895m on October 1, 2026—funded via new debt issuance at rates above the current 5.8% average. S&P Global reaffirmed TLC’s BBB+ rating on May 4, 2026.
