On 19 August 2026, The Lottery Corporation Limited (ASX:TLC) released its results for the year ended 30 June 2026 (FY26), titled Platform for accelerated growth established; Dividend maintained. The company reported lower Revenue and Earnings than FY25 and held its full-year dividend at 16.5 cents per share, fully franked.

FY26 group results

Revenue was A$3,582.5 million, down 2.7%, and EBITDA before significant items was A$736.1 million, down 1.8%. NPAT before significant items was A$342.5 million, down 6.3%. Significant items after tax were A$57.9 million, so NPAT including significant items was A$284.6 million, down 22.1%. EPS before significant items was 15.4 cents, compared with 16.4 cents, and including significant items was 12.8 cents.

The company said the result came in what it described as a 1-in-45-year outcome for jackpots. There was no A$100 million Powerball jackpot for the first time since FY21 and no A$50 million Oz Lotto jackpot for the first time since FY17, which it estimated reduced revenue by about A$350 million and variable contribution by about A$90 million.

Lotteries and Keno

Lotteries revenue was A$3,218.2 million, down 3.3%, and EBITDA was A$626.6 million, down 3.0%. Price retention was 63% for Powerball, which had a price change in November 2025, and 100% for Saturday Lotto. Digital share of turnover rose to 46.6% from 45.7%. Set for Life is next for a refresh, with the subscription price rising from 60 cents to 70 cents from September 2026 subject to approvals, and an Oz Lotto refresh is intended for late calendar 2027.

Keno revenue was A$364.3 million, up 3.0%, and EBITDA was A$109.5 million, up 6.2%.

Dividend and the change in policy

The Board determined a final ordinary dividend of 8.5 cents per share, fully franked, in line with the prior year, bringing the FY26 total to 16.5 cents. The company said this is a payout of 107% of FY26 NPAT before significant items. The final dividend was payable on 24 September 2026 to shareholders registered on 27 August 2026, with an ex-date of 26 August.

From FY27, the dividend policy changes to 80% to 100% of NPATA before significant items, from 80% to 100% of NPAT before significant items. NPATA adds back licence Amortisation after tax, forecast at about A$43 million in FY27.

Leverage, guidance and regulation

Leverage (net Debt to EBITDA) was 3.1 times at year end and is expected to increase materially in 1H27 after a payment of A$1,145 million for the 40-year extension of the Victorian lotteries licence, likely beyond the long-term target range of 3.0 to 4.0 times. S&P Global reaffirmed a BBB+ rating on 4 May 2026.

FY27 guidance is operating expenses of A$305 million to A$315 million (FY26: A$296 million), Depreciation and amortisation of A$125 million to A$130 million and Capital Expenditure of about A$100 million. Proposed amendments to the Interactive Gambling Act, if passed unamended, would start from 1 January 2027 and affect online Keno, which was about 2% of group turnover and about A$25 million of EBITDA in FY26.

Sector backdrop

Lottery operators hold long-dated state licences, and results are influenced by jackpot sizes, which drive ticket sales on the largest games. Jackpot outcomes vary from year to year, and operators use price changes and digital growth to offset the variation.

Gambling regulation, including online restrictions, can change product availability, and licence renewals involve upfront payments that affect leverage.

Risks shareholders should weigh

The FY26 dividend of 16.5 cents represents 107% of NPAT before significant items, so it exceeded earnings on that measure. The new NPATA-based policy applies from FY27.

Leverage is expected to rise beyond the 3.0 to 4.0 times target range after the A$1,145 million Victorian licence payment. Significant items reduced FY26 NPAT by A$57.9 million.

Low jackpot outcomes cut revenue, and jackpots are variable. Proposed federal legislation would affect online Keno from 1 January 2027 if passed as drafted, and price changes depend on regulatory approvals.

What’s next

The final dividend was payable on 24 September 2026. The company’s priorities include Victorian terminal rollout, digital enhancements, a new app targeted for launch in the first half of FY28, the Set for Life refresh from September 2026 and the outcome of the Interactive Gambling Act amendments. Shareholders may wish to watch for Leverage after the Victorian payment and the first dividend under the new policy.