• Resilient underlying performance despite unfavourable jackpot outcomes
• Maintained interim dividend of 8.0 cps with payout ratio of 103%
• Digital share of Lotteries turnover up to 41.2%
• Continued strong growth in Keno business

The Lottery Corporation Limited (ASX: TLC) has announced its results for the half year ended 31 December 2025 (1H26). The company delivered a resilient underlying performance in the least favourable half for jackpot outcomes since its demerger from Tabcorp Holdings Limited in 2022. This impacted volumes from Powerball and Oz Lotto, resulting in a $400 million unfavourable impact on turnover. However, growth in the base game portfolio largely offset reduced jackpot games volumes, with game changes and active portfolio management having a positive impact. The new $6 million Division 1 offer and subscription price increase for Saturday lotto won immediate acceptance with strong price retention of 103%. The Lotteries division's revenue was $1,615.7 million, down 0.9% on the prior corresponding period (pcp), while EBITDA was $308.6 million, down 1.9% on the pcp. The Keno business continued its strong performance, with revenue up 7.0% to $199.3 million and EBITDA up 6.2% to $58.4 million. The Lottery Corporation maintained strong capital and cost discipline, with a leverage ratio (Net Debt/EBITDA) of 3.0 times at the end of 1H26, at the lower end of the target range of 3.0-4.0x. The company determined an ordinary 1H26 dividend of 8.0 cents per share, in line with the pcp, with a payout ratio of 103% of 1H26 NPAT. Looking ahead, the company is prioritizing initiatives to transform its digital offering, review its brand architecture and positioning, enhance its base game portfolio, explore new product opportunities, invest in Keno, and simplify its organizational structure.

FY26 guidance: Operating expenses $310-$320m, Depreciation & amortisation $110-$115m, Capital expenditure $90-$100m

The Lottery Corporation is prioritizing initiatives to transform its digital offering, review its brand architecture and positioning, enhance its base game portfolio, explore new product opportunities, invest in Keno, and simplify its organizational structure to unlock more of the existing businesses' potential.