Published: February 26, 2023

Australia’s THE LOTTERY CORPORATION first half revenue closes on on AUD $2BN, setting record


Our brands and games have been adding excitement to the lives of Australians for more than 140 years. We are the driving force behind Australia’s largest lottery games and one of the highest performing lotteries businesses globally1

A landmark year for our Company
The successful demerger of the Lotteries and Keno business from the Tabcorp Group on 1 June 2022 enabled the creation of The Lottery Corporation as a standalone entity listed on the Australian Securities Exchange.
It was a watershed moment for a business that dates back to 1881 when George Adams organised the first Tattersall’s public sweep on the Sydney Cup. Our story spans more than 140 years, our brands are entrenched in the hearts and minds of Australians and today we’re proud to be one of the highest performing lotteries globally and the leader in the Australian lotteries and keno market.
Our business is one of significant scale and reach with
the equivalent of 46% of the Australian adult population purchasing a lottery ticket in the past year, an extensive retail footprint of more than 7,200 outlets including one
of Australia’s largest retail franchise networks, 4.1 million active registered lottery customers and high performing digital channels.

Forging our own path
There were two overarching priorities for the year: delivering the demerger and maintaining momentum in the business.
The demerger required detailed strategic planning, highly focused project management and many regulatory approvals. It was a significant achievement to have delivered it successfully and on time.
As a standalone entity, the Board and management team are now solely focussed on our core Lotteries and Keno businesses, which continued their recent strong momentum.

A record financial result
The Lottery Corporation delivered a record result in FY22, following strong performance in FY21 when we saw a rise in lottery product purchases during the height of the COVID pandemic. Once again, the resilience of lotteries in different trading conditions was demonstrated.

On a Comparable basis, Group Revenue increased 9.4% to $3,507m and Comparable Group EBIT before significant items increased 13.8% to $603m. The result reflects the strength of our strategic approach to managing a diverse and balanced product and game portfolio, the success of our omni-channel distribution strategy and our focus on being customer-led.
The Keno business performed well given retail closures in the first half and rebounded strongly as COVID restrictions eased. Overall revenue was flat with the impact of COVID-related venue closures mostly offset by digital growth.

Successful delivery of key initiatives
Strong growth in our Lotteries business was underpinned by several initiatives focused on product innovation, active portfolio and jackpot sequence management, digital enhancements and retail uplift.

The Oz Lotto game change implemented in May 2022 was designed to reinforce Oz Lotto’s strategic position in the jackpot segment of the game portfolio and has been well received by customers. Success of the previous changes to Saturday Lotto and Set for Life were demonstrated through their resilient performance in the face of heightened jackpot activity from Powerball in FY22.
Active jackpot sequence management was instrumental in delivering a new record for Powerball in February 2022 with the $120 million new jackpot level outselling the $150 million draw of 2019.
A continual focus on digital innovation and capability, from both a selling and customer engagement perspective, saw the digital share of Lotteries turnover grow to just under 38%, driving margin improvement.

The launch of our omni-channel program into South Australia completed the final phase of our national rollout and we continued to invest in our retail network building a contemporary and accessible retail presence.

On Keno, a new 20-year Victorian licence on a non-exclusive basis was secured, with the licence now allowing for digital sales. Customer-led initiatives centred around new payment methods with Paypal and improving the in-venue experience through digitised play.

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