Australia's Lottery Corp slips; Macquarie trims PT and earnings estimates

Lottery

08/01/2025 02:33

** Shares of Australia's Lottery Corporation  TLC.AX  fall
as much as 1.1% to A$4.975, set for weakest trading session
since Dec. end
    ** Analysts at Macquarie lower PT on TLC to A$5.40 from
A$5.50; maintain "Outperform" rating
    ** Brokerage expects co's lottery volumes to fall by 7% in
FY25 and sees co reporting lower earnings for 1H25
    ** Macquarie anticipates TLC to post 1H25 net profit after
tax of A$177 mln ($110.20 mln), down 9% from a year ago and 6%
lower market consensus
    ** Lowers earnings estimates by 8%, 3% and 3% for FY25-27,
respectively
    ** Lottery Corp has traditionally been good buying during
periods of poor lotteries volumes, with short-term volatility
smoothing out in time - Macquarie
    ** 10 of 14 analysts rate the stock "Buy" or higher, four
"Hold"; median PT - A$5.40 – LSEG data
    ** Stock gained 2.6% in 2024


($1 = 1.6062 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))