The Lottery Corporation's shares fall as Citi expects weak earnings
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The news: The Lottery Corporation was one of the worst performing shares on the ASX 200 in morning trade as Citi analysts downgraded their position on the stock as they expect full-year earnings before interest and tax could decline by 13%.
The numbers: At 11:38am AEST The Lottery Corporation’s share price had slipped 2.9% to $5.22.
The context: In a research note, Citi analyst Adrian Lemme downgraded his position on the stock to ‘sell’ from ‘buy’ and cut the bank’s target price to $5.
With The Lottery Corporation’s financial year 2025 results to be reported on 20 August, Citi expects earnings before interest and tax (EBIT) to decline about 13% to $628 million. The investment bank lowered its EBIT forecasts by about 2% to 6% over the forecast period.
What they said: “Powerball LFLs have deteriorated further in May/June and its jackpot sequence has been weaker than expected. We expect the weakness in Powerball LFLs to carry through to 1H26,” Lemme’s note reads.
“We also temper our expectations on the uplift to Powerball turnover following game changes planned for late FY26.”
The source: Citi research
