Citi expects Australia's Lottery Corporation 2H26 earnings to miss estimates, flags softer lottery demand

Lottery

31/05/2026 22:50

** Citi says Visible Alpha (VA) consensus 2H26 EBIT estimate for Lottery Corporation TLC.AX is optimistic, expects co to miss VA estimates by 10%
** Brokerage says actual lottery turnover weakened in May and fewer jackpot lots in June reduced lottery ticket buyers
** Says co's lottery game, Powerball like-for-like (LFL) sales were 7% as at May end, down from 8% in April and Oz Lotto's LFL sales are down 10% year-on-year over the last six months as at May end
** Expects the weakening consumer environment to place further pressure on co's LFL sales 
** Sees co's FY27 Group EBIT estimates 5% below VA consensus, reflecting this weakness
** Citi maintains 'neutral' stock rating, keeps A$5.1 PT
** YTD, TLC up 5%, as of last close
($1 = 1.3949 Australian dollars)

 (Reporting by Aamir Sheik Khalid in Bengaluru)
 ((Aamir.SheikKhalid@thomsonreuters.com))