Lottery Corp's (TLC) adjusted revenue and EBITDA were up 14% and 15%, respectively, during the 12 months to June 30, 2024 (fiscal 2024). This was helped by record jackpot activity, recent game innovations, higher prices, and disciplined cost control. Momentum in digital sales, which represented 40.9% of total lottery revenue, also supported the results. We expect a modest decline in revenue and EBITDA in fiscal 2025 due to normalized jackpot activity and higher operating expenses associated with wage inflation and remaining post-demerger costs. Consistent growth of higher-margin digital sales should help offset the impact of subdued frequency and spend per player. We forecast TLC?s margins will remain at 20%-21% over the next two years, supported by the group?s strong market
