Citi says Lottery Corporation's success depends on younger players, cuts PT

Lottery

03/06/2026 23:19

** Citi lowers PT on Australia's Lottery Corporation TLC.AX to A$5 from A$5.1 
** Brokerage continues bet on downside risk to the lottery operator in its FY27 estimate 
** Says 'most encouraged' by co's digital initiatives to better target younger players at today's investor day 
** Citi, however, says success on winning younger players is critical given 65+ aged players represent 28% of lottery participation and will age out
** Notes co's operating cost guidance for FY26 was reduced to A$300-A$310 million ($213.87-$221.00 million) from A$310-A$320 million, but part of reduction driven by lower marketing spend which will increase once jackpot games normalise
** Adds, banning of co's online lottery game Keno from January 2027 will impact operating earnings by A$25 million for the year
** Citi maintains 'neutral' stock rating
** YTD, stock up 5%, as of co's last close
($1 = 1.4027 Australian dollars)

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