Lottery Corp shares rise 3% on first-half profit boost
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The news: The Lottery Corporation shares climbed in early trading after the group reported a 26% rise in first-half net profit.
The numbers: Net profit after tax, including significant items, increased 25.7% year-on-year to $217.4 million. Revenue lowered 1.8% to $1.9 billion, and EBITDA declined 2.5% to $399.1 million compared to the prior corresponding period.
Lottery Corp declared an interim dividend of 8 cents per share, in line with 1H23. Its shares were up 3% to $5.21 by 11:00am AEDT.
The context: Australia's largest lottery company said the first half saw softer economic conditions, driving a "modest decrease in frequency and spend as customers looked for the best value proposition in The Lottery Corporation's weekly offer of games".
However, CEO Sue van der Merwe said earnings were bolstered by changes made to Oz Lotto in 2022 to increase the probability of bigger jackpots.
What they said: Van der Merwe said: "We have hit the ground running in the second half with a record $200 million Powerball jackpot on 1 February, following $100 million and $150 million draws".
"The introduction of a Weekday Windfall is the next phase in the evolution of our game portfolio. Weekday Windfall is a major refresh of Monday and Wednesday lotto, with a new brand and a Friday draw."
The source: ASX announcement
