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Lottery Corporation revenue falls 2.7% to AU$3.58bn amid weak jackpots

Keno EBITDA increased 6.2%, while the digital share of eligible lottery turnover reached 46.6% during FY26.

2 min read
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Key Points
Group revenue declined 2.7% to AU$3.58bn after unusually low Powerball and Oz Lotto jackpots
EBITDA before significant items fell 1.8% to AU$736.1m, with statutory net profit down 22.1%
The operator maintained its annual dividend at 16.5 cents per share despite a 107% payout ratio

The Lottery Corporation has reported FY26 revenue of AU$3.58bn (US$2.53bn), down 2.7% year-on-year, after an unfavourable sequence of Powerball and Oz Lotto jackpots reduced customer spending.

EBITDA before significant items decreased 1.8% to AU$736.1m, while net profit after tax before significant items fell 6.3% to AU$342.5m. Statutory net profit, including AU$57.9m in significant items, declined 22.1% to AU$284.6m.

The Australian lottery operator estimated that low jackpot outcomes reduced revenue by approximately AU$350m. There was no AU$100m Powerball jackpot for the first time since FY21, while Oz Lotto did not reach AU$50m for the first time since FY17.

Lotteries revenue declined 3.3% to AU$3.22bn and divisional EBITDA fell 3% to AU$626.6m. Price increases for Powerball and Saturday Lotto partly offset the weaker jackpot cycle, alongside growth in games that do not depend on accumulated jackpots.

The division’s digital share of eligible turnover rose from 45.7% to 46.6%. The Lottery Corporation now plans to move more than four million unregistered customers into its retail and digital membership system.

Keno provided a contrasting result. Revenue increased 3% to AU$364.3m and EBITDA rose 6.2% to AU$109.5m, supported by retail turnover and lower operating expenses.

The Lottery Corporation FY25 vs FY26 results

The Lottery Corporation’s revenue, EBITDA before significant items and statutory net profit after tax for FY25 and FY26. Figures in AU$m.

The results follow a 40-year extension of the operator’s exclusive Victorian public lottery licence, taking its expiry to June 2068. The agreement requires an upfront payment of AU$1.15bn and was reached through exclusive bilateral negotiations with the Victorian Government.

Group leverage stood at 3.1 times EBITDA at year-end. The licence payment is expected to push leverage above the operator’s long-term target range during the first half of FY27. 

The Board maintained the full-year dividend at 16.5 cents per share, representing 107% of net profit before significant items. The dividend policy will move to a cash-based net profit measure from FY27.

The results also disclosed that proposed federal restrictions on online Keno could affect a business which contributed approximately AU$25m in FY26 EBITDA. The disclosure follows allegations that The Lottery Corporation lobbied for the bill’s separate prohibition on foreign-matched lotteries.

Good to know

The Lottery Corporation expects to refresh Set for Life in September 2026 by raising its subscription price and introducing additional upfront prizes, subject to regulatory approval

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