Full Year 2025 Lottery Corporation Ltd Earnings Call Transcript
Key Points
- The Lottery Corp Ltd (LTRCF) achieved a resilient financial performance in FY25, supported by a strong financial position and robust cash flow.
- Digital share of lottery sales increased from 23% to 42% over the last six years, contributing to margin expansion.
- The company increased its full-year ordinary dividend to $16.50 per share, highlighting confidence in its outlook.
- Successful game changes, such as the refresh of Saturday Lotto and the introduction of Weekday Windfall, have been well-received by customers.
- The company maintained a disciplined cost management approach, resulting in operating expenses below the expected range.
- Revenue declined by 6% due to lower Division 1 prize offerings, impacting overall financial performance.
- EBITDA decreased by 9%, reflecting the softer jackpot cycle and increased technology costs.
- Net profit before significant items was down 11.2%, influenced by jackpot cycle dynamics.
- Retail turnover was more impacted than digital by lower prize offers, affecting overall sales.
- Online Keno turnover declined by nearly 20% due to the introduction of mandated weekly spend limits.
Good morning. Thanks for joining us today. I'm Sue Van der Merwe, Chief Executive Officer of the Lottery Corporation. I'm pleased to announce our financial results for FY25. I'm joined by our CFO, Adam Newman. Together, we'll take you through the investor presentation, lodged with the ASX this morning.
I'll start on slide 4. This slide clearly demonstrates the resilience of our business and ability to deliver sustainable growth over time. The lottery industry long-term trend in turnover growth is in line with or above inflation and population growth. Profitability has also grown over time, with digital share gains underpinning BC margin expansion.
Over the last six years, Lottery's digital share has risen from 23% to 42%. Lottery's BC margin has grown from 23% to almost 27%. The yellow line on the graph represents the three-year average turnover, which smooths the impact of the short-term jackpot fluctuations. In line with the long-term trend, this grew again in FY25. It's a
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