Lottery Corp Reports $3.7B Revenue, 3.1% Dividend Rise Despite Revenue Dip
The Lottery Corporation reported a resilient FY25 with $3.7 billion revenue and a 3.1% dividend increase, driven by digital sales growth and strategic game refreshes despite a revenue decline from a record jackpot year.
- FY25 revenue of $3.7 billion, down 6.2% after record FY24 jackpots
- Digital lottery sales grew to 41.8% of turnover
- Incremental $90 million turnover from new Weekday Windfall draw
- Dividend increased 3.1% to 16.5 cents per share, fully franked
- Planned Powerball price rise and $100 million capex for digital transformation
A Year of Resilience After Record Jackpots
The Lottery Corporation has delivered a solid financial performance for the full year ended June 30, 2025, posting revenue of $3.7 billion and EBITDA of $749.3 million. While these figures represent a 6.2% decline in revenue compared to the previous year, this dip follows an exceptional FY24 marked by record jackpot wins that naturally elevated turnover.
Despite the revenue contraction, the company’s diversified portfolio and active management strategies have helped maintain steady customer participation. The defensive nature of lottery products proved valuable as players sought value amid broader economic challenges.
Digital Momentum and Game Innovations
Digital sales continue to be a bright spot, with the digital share of turnover increasing to 41.8% from 40.9% the prior year. This growth in higher-margin digital channels contributed to an improved margin on variable contributions relative to revenue. The Lottery Corporation’s investment in customer experience enhancements, including a new customer data platform and improved onboarding, is clearly paying dividends.
Notably, the introduction of the additional Weekday Windfall draw on Fridays generated approximately $90 million in incremental turnover, signaling strong customer appetite for new game formats. The May 2025 refresh of the Saturday lotto, which increased the Division 1 prize from $5 million to $6 million alongside a modest 10-cent price rise, was well received, with early indications showing strong retention of the price increase.
Keno’s Retail Growth and Responsible Play Initiatives
Keno also posted growth, with retail turnover up 8.1%, supported by targeted marketing campaigns and partnerships with pubs and clubs. However, digital Keno turnover declined by 18.6% following the introduction of mandatory spend limits for online players, a move aligned with the company’s long-term sustainability goals. This responsible play initiative underscores The Lottery Corporation’s commitment to balancing growth with player protection.
Financial Strength and Shareholder Returns
The company’s robust cash flow and strong balance sheet enabled a 3.1% increase in the fully franked total ordinary dividend to 16.5 cents per share, reflecting confidence in ongoing performance. The payout ratio sits at the top end of the target range at 100%, signaling disciplined capital management. Leverage remains manageable with a net debt to EBITDA ratio of 2.9x, and the Board is focused on maintaining financial flexibility while supporting growth initiatives.
Looking Ahead, Digital Transformation and Price Changes
Looking forward, The Lottery Corporation plans to increase capital expenditure to around $100 million in FY26 to accelerate digital transformation and modernize its ecosystem. This investment aims to enhance product delivery speed and create a seamless omni-channel experience for customers.
Additionally, subject to regulatory approval, a Powerball entry price increase from $1.20 to $1.40 is planned for November 2025, accompanied by higher prize offerings and retailer commissions. This move is designed to reinforce Powerball’s position as Australia’s premier premium jackpot game.
Overall, The Lottery Corporation enters FY26 with positive momentum, focusing on revenue growth, operational efficiency, and further digital expansion to drive long-term value.
Bottom Line?
The Lottery Corporation’s strategic investments and game innovations position it well for growth, but regulatory approvals and jackpot variability will shape FY26 outcomes.
Questions in the middle?
- Will the planned Powerball price increase gain regulatory approval and how will it impact player participation?
- How will increased capex for digital transformation translate into revenue and margin growth?
- Can The Lottery Corporation sustain digital sales momentum amid evolving player preferences and responsible gambling measures?