The Lottery Corporation Limited (TLC) – You’ve had a win!

The Lottery Corporation Limited provides gaming and entertainment services in Australia. It operates lottery and Keno games under The Lott and Keno brand names. The company was founded in 1881 and is based in Brisbane, Australia.

‍

The Lottery Corp recently posted first-half FY25 earnings that matched market expectations. The highlight of the result was full-year cost guidance that flagged a meaningful fall on a year ago. The second half will see lottery revenue under pressure given the business will be cycling its strongest half-year period ever, but growth should return in FY26. The Keno business disappointed, as a thin 1% rise in revenue ended up as a fall of 1% in earnings.

‍

We view Lottery Corp at its current share price levels as a quality stock to put in your bottom drawer and wait for growth. This leads us to reiterate our Buy recommendation on the stock and our target price of $5.70.

‍