• Resilient underlying performance despite unfavourable jackpot outcomes
• Continued strong Keno growth and digital share expansion
• Interim dividend maintained at 8.0 cps, payout ratio of 103%
• Successful Saturday lotto game change with strong price retention

The Lottery Corporation Ltd (TLC) reported its 1H26 financial results, highlighting a resilient underlying performance despite the least favourable half for jackpot outcomes since the company's demerger. Revenue grew 2.0% to $1,815.0m, with variable contribution up 0.3% to $513.0m. EBITDA was $367.0m, down 0.7% due to the $400m unfavourable impact from Powerball and Oz Lotto jackpot outcomes. The company's digital share of Lotteries turnover increased 80bps to 41.2%, and it maintained its interim dividend at 8.0 cps, with a payout ratio of 103%. TLC's Keno business continued its strong growth, with EBITDA up 6.2% to $58.4m. The company executed successful changes to its Saturday lotto game, achieving a 103% price retention. TLC's balance sheet remains robust, supporting ongoing investment and flexibility for organic opportunities. The new CEO outlined initial priorities to unlock further value, including reviewing brand positioning, exploring new products, enhancing the digital customer experience, and simplifying the organisational structure.

For the 2026 financial year, TLC expects operating expenses of $310-$320m, depreciation and amortisation of $110-$115m, and capital expenditure of $90-$100m.

TLC's new CEO outlined key strategic focus areas to unlock further value, including modernising platforms, embedding digital across the enterprise, creating seamless customer experiences, concentrating on local market growth, and strengthening the company's position in the domestic market. The company will also focus on disciplined capital and cost allocation, and continue active game and portfolio management.