Lottery Corporation Limited · ASX:TLC
Lottery — The Lottery — 1H25 Earnings Presentation
33 slides from Lottery's earnings presentation, Feb 19, 2025
Slide 1: 2025 Half Year Results Investor Presentation (ASX announcement)
19 February 2025 ASX Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 2025 HALF YEAR RESULTS INVESTOR PRESENTATION Attached is a copy of the slides that will be presented at The Lottery Corporation’s 2025 Half Year Results Briefing today. The Briefing will commence at 10:30am
Slide 2: 1H25 Half Year Results Presentation
1H25 Half Year Results Presentation Half Year ended 31 December 2024 19 February 2025
Slide 3: A world-class lotteries business
A world-class lotteries business
Slide 4: Table of Contents
3 Table of Contents 04 - 09 Group Overview 11 - 18 Business Results 20 - 22 Strategy & Conclusion 24 - 30 Appendices 3
Slide 5: A track record of sustained industry growth and resilience
A track record of sustained industry growth and resilience ® Positive growth in 3-year average turnover, notwithstanding short-term fluctuations due to jackpot variability Australian Industry Turnover – Lotteries & Keno (A$bn)1, 2 COVID-19 +5.8% p.a. Global Financial Crisis 10.3 9.3 9.5 CAGR: FY19 -
Slide 6: The Lottery Corporation
The Lottery Corporation ® The leader in Australia’s lotteries and Keno market and one of the highest performing lotteries businesses globally Exclusive and/or long dated licences1 Low-spend, mass participation model underpins wide community acceptance Diversified and balanced portfolio of high-profi
Slide 7: 1H25 Highlights
1H25 Highlights ® Resilient performance powered by customer-focused innovation and portfolio strength • Diversified portfolio attracted strong participation in period of below-average jackpot outcomes Resilient • Growth in Lotteries’ active registered customers and digital share driven by marketing
Slide 8: 1H25 Group Results
1H25 Group Results ® $m Change 1H25 1H24 $m % Revenue 1,779.2 1,884.9 (105.7) (5.6%) Variable contribution 511.6 534.3 (22.7) (4.2%) Operating expenses (141.9) (135.2) (6.7) (5.0%) EBITDA (before significant items)1 369.7 399.1 (29.4) (7.4%) D&A (53.5) (52.1) (1.4) (2.7%) EBIT (before significant it
Slide 9: Group EBITDA
Group EBITDA1 ® Solid underlying performance impacted by unfavourable jackpot outcomes, draw timing and separation run-rate impacts Lotteries Keno -$28.4m -$1.0m $399.1m (28.2) 7.4 (7.6) (1.0) $369.7m • Significant increase in technology costs • Increased digital share • Increased interest revenue f
Slide 10: Capital, Opex and Other Metrics
Capital, Opex and Other Metrics ® Maintaining capital and cost discipline alongside balance sheet flexibility Dividends (fully franked) Opex 1H25 Interim Ordinary $141.9m Target: FY25 Opex $310 – 320m 8.0cps (In line with 1H24: 8.0 cps) Target: 80 – 100% of full year NPAT (before significant items)
Slide 11: Table of Contents
Table of Contents 04 - 09 Group Overview 11 - 18 Business Results 20 - 22 Strategy & Conclusion 24 - 30 Appendices 10
Slide 12: Lotteries: Result Summary
Lotteries: Result Summary ® Solid underlying performance $m 1H25 1H24 Change Positive impact of new Friday Weekday Windfall draw and active portfolio and Revenue 1,631.1 1,738.3 (6.2%) sequence management Variable contribution 435.8 456.6 (4.6%) Operating expenses (121.1) (113.5) (6.7%) Participatio
Slide 13: Lotteries: KPIs – Customers & Channel
Lotteries: KPIs – Customers & Channel ® Strategic initiatives drove growth vs pcp in active customers and digital share Number of Active Registered Customers – last 52 weeks1 (000’s) Turnover by Channel ($m) Digital share up vs pcp despite lower digital share from Estimated total active customers2 o
Slide 14: Lotteries: KPIs – Product
Lotteries: KPIs – Product ® Demand has stabilised following base game softness in 2H24 as customers continue to focus on value Turnover by Product Type ($m) Turnover Growth 3,898 -5.4% 3,649 vs pcp 1H25 (v 1H24) 1H25 (v 2H24) 3,449 3,262 Actual2 Like-for-like2,3 Like-for-like 2,965 Powerball® (0.2%)
Slide 15: Lotteries: KPIs – Jackpot Games
Lotteries: KPIs – Jackpot Games ® Below-average jackpot outcomes impacted 1H25 turnover by c.$200m1,2, but solid like-for-like performance Cumulative Jackpot Value Offered ($m) Powerball® and Oz Lotto® Major Jackpots 1,516 28 27 400 6 24 -13.4% 23 1,174 8 1,140 vs pcp 5 1,017 7 19 328 2 532 -21.6% 7
Slide 16: Successful launch of Weekday Windfall lottery
Successful launch of Weekday Windfall lottery ® New Friday draw and price increase delivered more than $50m1,2 in incremental turnover in 1H25 Total increase from Annualised Friday Weekday Windfall Scale of Friday Draw lottery Weekday 3 Play Turnover c.65% c.$125m +28% c.11% of average of Monday/ Ba
Slide 17: Saturday Lotto game change
Saturday Lotto game change1 ® Ongoing portfolio innovation to drive growth Recent game changes (actual and planned) Key Changes 2018 • Subscription price increase from 75 cents to 85 cents (+13.3%) • Division 1 estimated prize pool: up from $5m to $6m (+20.0%) 2020 • Some optimisation of prize pool
Slide 18: Keno: Result Summary
Keno: Result Summary ® Strong retail performance; digital impacted by voluntary introduction of digital spend limits $m 1H25 1H24 Change Revenue 148.1 146.6 1.0% New “Together We Play” brand campaign and local area marketing initiatives Variable contribution 75.8 77.7 (2.4%) continued to benefit ret
Slide 19: Keno: KPIs
Keno: KPIs ® Retail remains strong; Keno Classic continues to underpin portfolio performance Turnover by Channel ($m) Keno Turnover by Product ($m) +2.5% +2.5% vs pcp vs pcp 805 805 +11.9% 781 785 766 781 785 85 766 47 vs pcp 115 718 103 101 (10.6%) -17.5% 48 42 (14.7%) 94 (13.1%) (13.2%) vs pcp 718
Slide 20: Table of Contents
® Table of Contents 04 - 09 Group Overview 11 - 18 Business Results 20 - 22 Strategy & Conclusion 24 - 30 Appendices 19
Slide 21: Our strategy is designed to deliver on our vision
Our strategy is designed to deliver on our vision ® OUR VISION To be the world’s best lottery operator OUR PURPOSE To create positive impacts STRATEGIC PILLARS DRIVE DEVELOP DISCOVER Customer centred initiatives to Multi-year programs to Complementary new earnings support sustainable growth future-p
Slide 22: Driving Growth and Operational Excellence: Key Priorities for FY25
Driving Growth and Operational Excellence: Key Priorities for FY25 ® Initiatives to support sustainable growth, drive shareholder value and future-proof TLC OUR VISION To be the world’s best lottery operator Responsibly deliver seamless and • Uplift customer onboarding processes ID verification rate
Slide 23: Conclusion: A resilient, world-class lotteries business
Conclusion: A resilient, world-class lotteries business ® Resilient financial performance in 1H25 Executing clear, consistent strategy Ongoing portfolio innovation driving growth Delivering value for stakeholders, responsibly A track record of sustainable growth and resilience 22 22
Slide 24: Table of Contents
23 Table of Contents 04 - 09 Group Overview 11 - 18 Business Results 20 - 22 Strategy & Conclusion 24 - 30 Appendices 23
Slide 25: Appendix 1: Significant Items
Appendix 1: Significant Items1 ® Settlement of pre-demerger tax litigation matters Significant Items ($m) 1H25 1H24 • On 11 September 2023 The Lottery Corporation Limited (TLC) and Tabcorp Settlement of pre-demerger tax litigation Holdings Limited resolved a dispute with the Australian Tax Office re
Slide 26: Appendix 2: Group & Business Results
Appendix 2: Group & Business Results ® Lotteries Keno Group $m 1H25 1H24 Change 1H25 1H24 Change 1H25 1H24 Change Revenue 1,631.1 1,738.3 (6.2%) 148.1 146.6 1.0% 1,779.2 1,884.9 (5.6%) Variable contribution 435.8 456.6 (4.6%) 75.8 77.7 (2.4%) 511.6 534.3 (4.2%) Operating expenses (121.1) (113.5) (6.
Slide 27: Appendix 3: Lotteries – Turnover by product
Appendix 3: Lotteries – Turnover1 by product ® Turnover by Game ($m) 1H25 Turnover by Game Change 1H25 1H24 Game $ % Powerball® 1,209 1,211 (2) (0.2%) 1% 3% 7% Oz Lotto® 521 658 (137) (20.8%) 5% Powerball® Jackpot Games 1,730 1,869 (139) (7.4%) Oz Lotto® 37% 8% Saturday Lotto 2 Saturday Lotto 755 86
Slide 28: Appendix 4: Balance Sheet and Debt
Appendix 4: Balance Sheet and Debt ® Balance Sheet Debt $m Dec-24 $m Dec-24 Total current assets 712.7 Gross debt – excluding lease liabilities (at spot)1 2,622.6 Licences 664.2 Less: Benefit of FX hedges on USPP principal2 (384.1) Other intangible assets 2,248.6 Gross debt – excluding lease liabili
Slide 29: Appendix 5: Cash Flow, Capex and Debt
Appendix 5: Cash Flow, Capex and Debt ® Cash Flow Debt Structure & Maturities2($m) $m Dec-24 800 • USPP (A$1,821m drawn) Interest margins/rates Net operating cash flows 301.6 700 • Bank Facility (A$420m drawn) • Average hedged USPP rate: 5.7% Net interest paid (57.6) 600 • Bank facility margin over
Slide 30: Appendix 6: Capital Allocation Framework
Appendix 6: Capital Allocation Framework ® A long-term framework to underpin a disciplined approach to the allocation of shareholders’ capital A disciplined approach to Driving Operating Game Portfolio capital allocation Operating Efficiency Capital Productivity Cash Flow Management • Commitment to
Slide 31: Appendix 7: Glossary
Appendix 7: Glossary ® Term Definition Term Definition 1H/2H Six months ended 31 December/30 June of the relevant financial year Group The Lottery Corporation group of companies AAS Australian Accounting Standards Gross Debt Defined as per Appendix 4 ACT Australian Capital Territory IFRS Internation
Slide 32: Disclaimer
Disclaimer ® This presentation (Presentation) contains summary information about the current activities of The Lottery Corporation Limited (The Lottery Corporation) and its subsidiaries. It should be read in conjunction with The Lottery Corporation’s other periodic and continuous disclosure announce
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