Australia's Lottery Corp falls, brokerages flag cost drag from licence extension

Lottery

06/05/2026 05:10

Updates with share move, Jarden comments

** Australia's Lottery Corporation TLC.AX drops as much as 6.8% to A$5.19, their lowest since March 9

** Lottery operator on Tuesday said it has secured a 40-year extension of its Victorian public lottery licence for an upfront premium of A$1.15 billion ($826.62 million)

 ** Jefferies says the longer licence term and thus higher upfront payment imply a more material drag from non-interest costs (NIC)

** Jefferies trims price target by 3% to A$5.6, maintains "hold" call

** Jarden views the license outcome as largely favourable, seeing structural de-rising from a long portfolio of long-duration licenses across major jurisdictions with no material renewal for 24 years

 ** However, it flags near-term earnings dilution; cuts FY27/28E reported NPAT by 13%–16% on higher finance costs, amortisation

** YTD, stock up 2%

($1 = 1.3912 Australian dollars)

(Reporting by Nikita Maria Jino  and Shruti Agarwal in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))