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Lottery Corporation Limited (AU:TLC)
ASX:TLC
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Lottery Corporation Limited (TLC) AI Stock Analysis

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AU:TLC

Lottery Corporation Limited

(Sydney:TLC)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
AU$6.00
▲(13.64% Upside)
The overall stock score of 61 reflects mixed financial performance with strong cash flow but high leverage. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Cash Generation
Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.
Operational Margins
Healthy operational margins reflect effective cost management, supporting long-term profitability and competitive positioning.
Product Portfolio
A diverse product portfolio allows TLC to cater to a broad audience, reducing dependency on any single revenue stream and enhancing market resilience.
Negative Factors
High Leverage
High leverage can strain financial resources, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.
Declining Revenue
Declining revenue growth indicates challenges in maintaining sales momentum, which could impact long-term financial performance and market share.
Profitability Pressure
Decreasing net profit margins suggest challenges in maintaining profitability, which could affect the company's ability to reinvest in its business.

Lottery Corporation Limited (TLC) vs. iShares MSCI Australia ETF (EWA)

Lottery Corporation Limited Business Overview & Revenue Model

Company DescriptionLottery Corporation Limited (TLC) is a leading operator in the gaming and lottery sector, known for its innovative lottery products and services. The company focuses on conducting state lotteries, providing a wide range of lottery games including instant win games, draw-based games, and online lottery platforms. TLC is committed to promoting responsible gaming while delivering engaging entertainment experiences for its customers across various demographics.
How the Company Makes MoneyTLC primarily generates revenue through the sale of lottery tickets and game entries. The company operates a diverse portfolio of lottery games, which includes both physical and digital formats, allowing it to cater to a broad audience. A significant portion of its revenue comes from ticket sales during high-profile draws, where jackpots can reach substantial amounts, attracting more players. In addition, TLC earns money through various partnerships with retailers, where a percentage of sales is shared. The company also engages in promotional campaigns and collaborations with brands to enhance player engagement, further boosting ticket sales. Additionally, TLC benefits from a portion of the proceeds allocated to state and community programs, which helps maintain its public goodwill and supports its operational funding.

Lottery Corporation Limited Financial Statement Overview

Summary
Lottery Corporation Limited shows mixed financial performance. The income statement reflects challenges in revenue growth and profitability, but the company maintains strong operational margins. The balance sheet indicates high leverage, posing a risk factor. However, the cash flow statement is strong, showcasing robust cash generation and management.
Income Statement
70
Positive
The company has shown a declining revenue trend with a negative growth rate of -4.215% in the latest year, indicating potential challenges in maintaining sales momentum. However, the company maintains strong gross profit margins, suggesting effective cost management. Net profit margins have decreased, reflecting pressure on profitability. EBIT and EBITDA margins remain healthy, indicating operational efficiency.
Balance Sheet
55
Neutral
The company has a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. Return on equity is low, reflecting limited profitability from shareholders' investments. The equity ratio is also low, suggesting reliance on debt financing. Overall, the balance sheet shows potential financial stability concerns.
Cash Flow
80
Positive
The company has demonstrated strong free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting good cash conversion from earnings. The free cash flow to net income ratio is also strong, highlighting efficient cash management. Overall, the cash flow position is a positive aspect of the company's financial health.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.74B3.73B3.98B3.50B3.28B2.95B
Gross Profit3.17B3.73B3.07B2.74B2.65B2.36B
EBITDA754.10M763.70M788.90M608.70M586.80M498.30M
Net Income365.50M365.50M414.00M264.80M346.60M399.30M
Balance Sheet
Total Assets4.41B4.41B4.36B4.37B4.22B2.71B
Cash, Cash Equivalents and Short-Term Investments550.50M550.50M504.00M841.30M640.50M427.20M
Total Debt2.50B2.50B2.48B2.55B2.49B3.20M
Total Liabilities4.08B4.08B4.00B4.11B3.97B2.44B
Stockholders Equity321.80M321.80M363.10M264.80M242.80M272.30M
Cash Flow
Free Cash Flow470.10M470.10M424.30M376.90M600.00M287.70M
Operating Cash Flow541.70M541.70M492.80M456.50M624.40M308.90M
Investing Cash Flow-96.00M-96.00M-87.60M-121.20M-63.50M19.20M
Financing Cash Flow-414.70M-414.70M-393.80M-217.00M-456.60M-330.70M

Lottery Corporation Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.28
Price Trends
50DMA
5.51
Negative
100DMA
5.57
Negative
200DMA
5.30
Negative
Market Momentum
MACD
-0.05
Positive
RSI
35.00
Neutral
STOCH
11.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:TLC, the sentiment is Negative. The current price of 5.28 is below the 20-day moving average (MA) of 5.37, below the 50-day MA of 5.51, and below the 200-day MA of 5.30, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.00 is Neutral, neither overbought nor oversold. The STOCH value of 11.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:TLC.

Lottery Corporation Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€680.53M16.7434.17%4.89%-8.81%-6.84%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
AU$12.02B32.87106.73%3.12%-6.28%-11.67%
55
Neutral
AU$2.16B59.062.89%2.15%8.62%
43
Neutral
AU$319.78M-142.61%6.47%60.03%
43
Neutral
AU$195.75M-25.15%-10.59%32.75%
43
Neutral
AU$260.16M-23.58-14.71%126.29%95.17%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:TLC
Lottery Corporation Limited
5.26
0.24
4.78%
AU:PBH
PointsBet Holdings
0.90
-0.08
-8.16%
AU:TAH
Tabcorp Holdings Limited
0.93
0.38
69.41%
AU:BET
Betmakers Technology Group
0.17
0.06
54.55%
AU:JIN
Jumbo Interactive Limited
11.15
-2.40
-17.69%
AU:BBT
BlueBet Holdings Ltd.
0.20
-0.12
-37.50%

Lottery Corporation Limited Corporate Events

Sue van der Merwe Resigns from The Lottery Corporation Board
Nov 27, 2025

The Lottery Corporation Limited announced the resignation of Sue van der Merwe from her position as a director, effective 27 November 2025. This change in the board’s composition may impact the company’s strategic direction and stakeholder relations, as van der Merwe held significant interests in the company, including ordinary shares and performance rights.

The Lottery Corporation Announces New CEO Appointment
Nov 26, 2025

The Lottery Corporation Limited has announced the appointment of Wayne Pickup as the new Chief Executive Officer and observer to the Board, with plans for him to become Managing Director following administrative formalities. This leadership change follows the retirement of Sue van der Merwe as Managing Director and CEO, who will assist with the transition until January 2026. This transition marks a significant leadership shift for the company, potentially impacting its strategic direction and operations.

Lottery Corporation Addresses Late Lodgement of Appendix 3G
Nov 20, 2025

The Lottery Corporation Limited announced a late lodgement of Appendix 3G related to performance rights granted under its employee incentive plan for FY26. The delay was attributed to an administrative oversight, which the company has addressed, assuring stakeholders that its compliance processes are adequate and that this incident is isolated.

The Lottery Corporation Issues New Performance Rights
Nov 20, 2025

The Lottery Corporation Limited announced the issuance of 1,362,457 unquoted performance rights as part of an employee incentive scheme. This move is aimed at aligning employee interests with company performance, potentially impacting the company’s operational strategies and stakeholder engagement positively.

Lottery Corporation Announces Cessation of Performance Rights
Oct 23, 2025

The Lottery Corporation Limited announced the cessation of 1,004,214 performance rights due to unmet conditions, effective October 21, 2025. This development may impact the company’s capital structure and could have implications for stakeholders regarding the company’s future performance and strategic direction.

Lottery Corporation’s AGM Resolutions Passed, Indicating Strong Shareholder Support
Oct 15, 2025

The Lottery Corporation Limited held its 2025 Annual General Meeting, where all proposed resolutions were passed. Key decisions included the election of Tim Poole as a new director and the re-election of Anne Brennan and John O’Sullivan as directors. Additionally, the adoption of the remuneration report and the grant of performance rights to the incoming Managing Director and CEO were approved. These outcomes reflect strong shareholder support and are likely to influence the company’s strategic direction and governance positively.

The Lottery Corporation Limited Reports Resilient 2025 Financial Performance
Oct 15, 2025

The Lottery Corporation Limited reported a resilient financial performance for the 2025 financial year despite a challenging economic environment. The company managed to increase its dividend by 3%, demonstrating confidence in its future and the sustainability of its operating model. With a strong balance sheet and high-quality earnings, the company is well-positioned to maintain shareholder returns, with approximately 85% of its debt either fixed or hedged, providing insulation from interest rate fluctuations.

Lottery Corporation Announces Director’s Interest Change
Oct 2, 2025

The Lottery Corporation Limited has announced a change in the director’s interest notice for Ms. Sue van der Merwe. This update reflects a change in her holdings, which includes a mix of ordinary shares and performance rights. The announcement is part of the company’s compliance with ASX listing rules and ensures transparency in the director’s financial interests, potentially impacting stakeholder perceptions of corporate governance.

Director’s Interest Update at The Lottery Corporation Limited
Sep 25, 2025

The Lottery Corporation Limited announced a change in the director’s interest for Dr. Doug McTaggart, who acquired an additional 970 ordinary shares through the company’s dividend reinvestment plan. This change reflects the director’s increased stake in the company, potentially signaling confidence in the corporation’s future performance and stability, which may have implications for stakeholders and investors.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 30, 2025