The Lottery Corporation reports lower FY26 profit on rare jackpots

• The Lottery Corporation reported a full-year revenue decline of 2.7% to $3.58 billion and a net profit drop of $284.6 million for FY26.
• Investors responded positively to the steady dividend and long-term outlook, sending the company's share price up 2.45% to $5.44.
• The company attributed the softer financial results to historically rare jackpot outcomes while highlighting cost discipline and a 40-year Victorian licence extension.

The Lottery Corporation (ASX:TLC) posted group revenue of $3.58 billion for the full year ended June 30, representing a 2.7% decrease compared to the previous period.

Net profit after tax fell to $284.6 million from $365.5 million.

The softer result contrasted with prior periods and followed a rare stretch of unfavourable jackpot outcomes that the company described as a one-in-45-year occurrence.

"FY26 is the year we have reset the business with a new operating model, refreshed strategy and clear growth levers," said The Lottery Corporation Managing Director and CEO Wayne Pickup.

Operating expenses fell 3.6% to $295.9 million through disciplined cost management.

Management indicated that the business has implemented a new operating model and refreshed strategy to support future growth as a digitally led entertainment platform.

The board declared a final ordinary dividend of 8.5 cents per share, bringing the total dividend to 16.5 cents per share.

Following the announcement the The Lottery Corporation share price was up at $5.38.

For FY27, operating expenses are expected to be around $305 to $315 million, while depreciation and amortisation are expected to hit between $125 and $130 million.

Capital expenditure for FY27 is expected to be $100 million.

The business operates major Australian lottery games such as Powerball and Oz Lotto alongside Keno, which delivered a revenue increase of 3% to $364.3 million during the financial year.