FINWIRES · TerminalLIVE
FINWIRES

Lottery's Victorian License Extension Structurally De-Risks the Business, Says Jarden

By

-- Lottery (ASX:TLC) has secured a 40-year extension of the Victorian Public Lottery License that structurally de-risks the business despite weighing on near-term earnings, Jarden said Wednesday in a note.

The exclusive monopoly license, achieved through an upfront payment of AU$1.145 billion, compares with Jarden's prior assumption of AU$400 million for a 20-year renewal. The extension underpins long-term earnings visibility with stable cash flows, it added.

The deal is expected to pressure near-term earnings, with a total NPAT headwind of roughly AU$47 million from higher financing costs, license amortization expenses, and the removal of online Keno revenue from 2027. However, the transition to an NPATA-based dividend policy should keep dividends broadly stable.

The investment firm lowered its fiscal 2027 and 2028 NPAT projections by 13% and 16%, respectively.

Jarden maintained its overweight rating and price target of AU$5.60.

Related Articles

Asia

ASX Preview: Australian Shares Set to Rise as US-Iran Tensions Ease; Amcor Posts Higher Fiscal Q3 Adjusted Earnings, Net Sales

Australian shares are poised to rise on Thursday as easing geopolitical tensions and prospects of a US-Iran peace deal drove oil prices lower, boosted gold, and softened the US dollar, creating a more supportive environment for equities.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 1.5%, 2%, and 1.2%, respectively.In the macroeconomy, the international trade in goods report is due at 11:30 am Sydney time.In corporate news, Amcor (ASX:AMC) reported Thursday fiscal third-quarter adjusted earnings of $0.96 per share on net sales of $5.91 billion, compared with adjusted earnings of $0.90 on net sales of $3.33 billion a year earlier.Orica (ASX:ORI) reported Thursday fiscal first-half adjusted earnings of AU$0.60 per share on revenue of AU$3.88 billion, compared with adjusted earnings of AU$0.533 on revenue of AU$3.94 billion a year earlier.Australia's benchmark index rose 1.3% or 113.1 points to close at 8,793.60 on Wednesday.

$^AXJO
Asia

Correction: Orica Posts Higher Fiscal H1 Adjusted Earnings, Lower Revenue

(Corrects the year-earlier sales revenue figure in the third paragraph)Orica (ASX:ORI) reported Thursday fiscal first-half adjusted earnings of AU$0.60 per share, compared with AU$0.533 a year earlier.Analysts polled by FactSet expected earnings of AU$0.58 per share, excluding extraordinary items.Sales revenue for the six months ended March 31 was AU$3.88 billion, compared with AU$3.94 billion a year earlier. Analysts surveyed by FactSet expected AU$4.06 billion.The company said it expects fiscal 2026 underlying earnings before interest and taxes to increase across all segments and all regions versus the prior period.The board declared an interim dividend of AU$0.285 per share, up from AU$0.25 a year earlier, payable July 3 to shareholders on record as of May 22.

$ASX:ORI
Asia

Zip Reconfirms Fiscal Year 2026 Guidance as US TTV Growth Tops 40% in April

Zip (ASX:ZIP) said momentum continued across the group in April, with US year-on-year total transaction value (TTV) growth above 40% in US dollar terms, according to a Thursday Australian bourse filing.The company said US credit outcomes are performing in line with expectations and on track to be below 1.75% of TTV for the fiscal fourth quarter.Zip reconfirmed fiscal year 2026 guidance, including group cash earnings before tax, depreciation, and amortization (EBTDA) of more than AU$260 million, US TTV growth of more than 40% in US dollar terms, and a group operating margin of more than 18%.Additional guidance metrics include a group revenue margin of about 8%, group cash EBTDA as a percentage of TTV of more than 1.4%, and a group cash net transaction margin of 3.8% to 4.2%, it added.

$ASX:ZIP