In the half year results released by The Lottery Corporation released yesterday there are some data pints that may interest newsagents.
The retail channel delivered continued turnover growth (up 3.5% on the pcp). Digital turnover continued to grow strongly (up 10.6% on the pcp) and accounted for 38.4% of all turnover in the half.
The TLC announcement attributes growth to jackpots, in particular, Powerball.
The note about EBITDA is interesting:
The EBITDA/Revenue margin improved from 18.8% to 19.7%, primarily due to the lift in digital share of turnover, a further step up in fees from the Jumbo reseller agreement and interest income on Set For Life deposits.
With the key being: primarily due to the lift in digital share of turnover.
Online is strong and growing, but the trajectory of growth appears to have slowed. This graph from Taylor Collison plotting TLC (and formerly Tabcorp) data shows:
I think a key reason for the small decline in percentage of revenue through the digital channel is the Powerball jackpots and that the infrequent shopper is more likely to purchase in-store than online.
For lottery retailers, jackpots are key to the return they achieve from offering lottery products since very busy lottery days offer an efficiency form which they can benefit.
Overall, the results for The Lottery Corporation are good for their shareholders.
I am sure that lottery retailers will appreciate the changes to remuneration that come into effect mid May 2023:
- A commission increase from 10.3% to 12.3% of subscriptions – excludes Lucky Lotteries Super Jackpot, Lucky Lotteries Mega Jackpot, Instant Scratch-Its, Coin Toss and Keno.
- A digital commission rate increase from 2% to 4% for GREEN, 1% to 2% for AMBER and no change for RED.
- A sign-up bonus rate increase from 1% to 3%, irrespective of the outlet’s rating.
- An increase in Powerball subscription by 10 cents from $1.10 to $1.20 with commission set at 12.3%.