The Lottery Corporation has reported a resilient half-year performance despite the lowest jackpot outcomes since its demerger, maintaining dividends and growing its digital footprint.
- Revenue up 2% to $1.815 billion despite $400 million jackpot turnover impact
- Interim dividend steady at 8.0 cents per share with payout ratio exceeding 100%
- Digital lottery turnover rises to 41.2%, reflecting strong online engagement
- Keno revenue grows 7%, driven by retail and digital channels
- Strategic focus on digital transformation, portfolio innovation, and disciplined capital management
Resilience Amid Jackpot Challenges
The Lottery Corporation has released its half-year results for the period ending 31 December 2025, revealing a business that has weathered a notably tough jackpot environment with commendable resilience. Despite experiencing the least favourable jackpot outcomes since its 2022 demerger, which negatively impacted turnover by approximately $400 million, the company managed to grow revenue by 2% to $1.815 billion.
This performance underscores the strength of The Lottery Corporation’s diversified portfolio and its ability to offset declines in marquee games like Powerball and Oz Lotto with growth in base games and other segments.
Dividend Stability and Financial Discipline
Investors will find reassurance in the company’s decision to maintain its interim dividend at 8.0 cents per share, consistent with the prior corresponding period. Notably, the payout ratio stands at 103%, reflecting the company’s commitment to delivering shareholder returns even in a subdued jackpot cycle. The balance sheet remains robust, with a leverage ratio at the lower end of the target range, providing flexibility for ongoing investments and strategic initiatives.
Digital Growth and Keno Momentum
One of the standout features of the results is the continued growth in digital engagement. The digital share of lottery turnover increased by 80 basis points to 41.2%, a significant achievement given the challenging jackpot backdrop. This digital momentum is complemented by strong growth in Keno, which saw revenue rise 7% year-on-year. The resurgence of online Keno following the introduction of mandatory spend limits and effective marketing efforts in retail venues has contributed to this positive trend.
Strategic Outlook – Digital, Local Markets, and Execution
Newly appointed CEO Wayne Pickup outlined a clear strategic vision focused on accelerating the company’s evolution as a digital entertainment provider, concentrating on local and regulated markets, and executing with discipline. Upcoming initiatives include a refresh of the Set for Life game with enhanced prizes and a subscription price increase, as well as ongoing innovation across the portfolio to unlock further value.
The company’s approach to cost management remains disciplined, with operating expenses growing below inflation, supporting sustainable profitability. Capital expenditure guidance for the full year remains in line with expectations, signalling continued investment in growth areas.
Navigating Uncertainty with Strategic Confidence
While the company faces the inherent unpredictability of jackpot outcomes, its diversified revenue streams, digital expansion, and strong capital position provide a solid foundation. The Lottery Corporation’s ability to maintain dividends and grow digital engagement during a challenging period will be closely watched by investors as it seeks to capitalise on new opportunities and deliver consistent returns.
Bottom Line?
The Lottery Corporation’s steady hand amid jackpot headwinds sets the stage for a digitally driven growth trajectory in 2026 and beyond.
Questions in the middle?
- How will upcoming regulatory approvals for the Set for Life game changes impact revenue and margins?
- Can The Lottery Corporation sustain its dividend payout ratio above 100% without compromising capital flexibility?
- What specific digital innovations and product launches are planned to accelerate growth in local markets?