Record result for FY22 following a strong FY21

The Lottery Corporation Limited (ASX:TLC) today announced its results for the full year ended 30 June 2022, the first results following the demerger of The Lottery Corporation from Tabcorp Holdings Limited on 1 June 2022.

FY22 performance highlights:

• Record result following a strong FY21, shows the value of the balanced game portfolio

• Comparable Group Revenue 1 of $3,507m, up 9.4% on pcp (Reported Group Revenue: $3,279m)  
• Comparable Group EBITDA of $694m, up 11.9% on pcp (Reported 2 Group EBITDA: $610m)

• Result shows the business’ resilience, defensive qualities and omni-channel model benefits

• Demerger successfully executed; significant ongoing work required to fully operationalise the separation

• Lotteries: Strong revenue growth underpinned by active portfolio and jackpot sequence management, and continuing growth in digital. Favourable Powerball outcomes in FY22, good performance from base games

• Lift in digital share of Lotteries' turnover (from 32.8% to 37.7%) drove further margin improvement; resilient performance in Lotteries retail 

• Keno: Flat revenue despite COVID-enforced retail closures (especially in NSW in 1H22) with some offset from digital growth. Revenue and reported margins both impacted by NSW closures where there is no digital alternative

“The successful completion of The Lottery Corporation’s demerger from Tabcorp enabled one of the world’s best performing lottery businesses to operate on a standalone basis,” The Lottery Corporation Managing Director and CEO Sue van der Merwe said.

“The Lottery Corporation has infrastructure-like and defensive asset qualities, low capital intensity, strong cash flows, significant and diverse retail distribution and upside potential from digital growth.

“We operate a portfolio of popular lottery and Keno games, underpinned by long-dated licences, offered to customers through an omni-channel approach.

“We were pleased to deliver a record result in FY22, which shows the strength of our balanced game portfolio. This follows on from a strong performance in FY21, supported by increased buying of lottery products during COVID-19 restrictions and lockdowns.

“The Lottery Corporation’s games have been adding excitement to the lives of Australians for decades. In FY22 we sold over 660 million Lottery entries and delivered initiatives to enhance the customer experience. These included the Oz Lotto game change implemented in May that will deliver bigger prizes and more winners, and enhancements to our responsible play programs.

“The Lottery Corporation is in the business of making positive impacts. In FY22, The Lottery Corporation’s operations generated $1.7bn in lottery and Keno taxes for governments and more than $500m in commissions for newsagents, licensed venues and other retail partners.”

1 “Comparable” information includes Keno for each reporting period. Refer slide 9 of the FY22 Full Year Results Presentation for further information. This information is “Non-IFRS” information and is unaudited. The Lottery Corporation believes these non-IFRS financial measures provide useful information to investors in measuring the financial performance and condition of its business. The comparable results do not include the full year impacts of dis-synergies associated with the demerger 2 Before significant items