The Lottery Corporation Limited

Good morning and thank you for joining today's call on the Lottery Corporation's 2026 financial results. I'm Wayne Pickup, the company's MD and CEO, and I'm joined by our CFO, Adam Newman. We'll walk through the investor presentation lodged with the ASX this morning, then open the line for questions. Since I joined the Lottery Corporation nine months ago now, you may have heard me say that it operates from a position of strength with a privileged market position and strong fundamentals. But while that's true, we need to position the business for the next chapter of growth to evolve from being a lottery operator to a digitally-led entertainment platform. To achieve that, we have refreshed the strategy and implemented a new operating model. New teams are in place and we're moving at pace to execute. We're preserving what's been successful over many, many years but modernising it for how Australians want to play and engage today as customers move online and demand more. That creates a clear opportunity underpinned by a simple vision to be the place where Australia comes to play. Looking back on the first year, three things stand out. Firstly, the core is strong. That's the benefit of strong infrastructure like foundations, through our long licences, operational scale and well-known brands. Secondly, FY26 was a really soft year for big jackpots. A one in 45 year outcome. A good one for our customers as more Australians won million dollar prizes. But it was the first time in five years that Powerball didn't jackpot to $100 million. Oslotto, our other jackpot game, didn't get to $50 million for the first time in nine years. But as you know, the math tells you jackpot runs even out over time. The momentum in pricing, base gain participation, and digital share matters more to the long-term trajectory than what happens in any single period. So when we evaluate our business, we see through the variations and think that's the right way to look at it. Thirdly, we're executing the new strategy well. Structural changes to our cost base are giving us room to invest in areas where we can get better returns, like digital, AI, product, and the customer experience in retail. Slide four outlines the investment case. Let's be clear, this is a great business that has trusted partnerships with governments to sell products that Australians love. Our license-backed market positions would be the envy of lottery operators around the world. Our scale is significant. That enables investments and provides the liquidity to fund the prizes that customers want. It's delivered steady turnover growth and reliable returns over many years. but more growth sits inside our existing customer base in addition to new customers we attract. We'll pull the structural levers to accelerate that growth over the medium to long term beyond the 4% historical turnover growth rate. Slide five shows how we will turn strategy into shareholder value. What's common to these initiatives is our intention to modernize the business and be more focused on entertainment, not just jackpots. We want people to come back more often, be engaged more often, and not just participate when there's large jackpots. So we need to fill the entertainment portfolio with more reasons to come back and engage and really build on these in-between moments. This will grow our base of known customers playing more often. What we're targeting is to combine accelerated revenue growth, expanded margins, and strong cash generations to deliver compounding earnings. We have the ingredients in this business to deliver it. Now it's about execution. Turning to the year in detail on slides seven and eight, if you wanted just one example of how resilient and reliable this business is, it's the fact we've held the dividend at 16 and a half cents. That also reflects our confidence in the business's health and growth outlook. The Victorian license extension to 2068 supports that growth outlook in three ways. It secures our position as the national lottery operator. It's materially reduced the business' risk profile. Our next major renewal is New South Wales in 2050. It keeps us part of the Victorian community as we have been for decades and supports a vibrant news agent and lottery agent network. The Victorian licence was always a bit of an outlier, historically granted on 10-year terms, but the extension brings it broadly in line with other licences. New South Wales and South Australia have 40 year terms and Queensland runs for 65 years. We had a very good year in terms of execution. Slide eight outlines several initiatives. The biggest pieces were the strategy refresh and new operating model. At an operational level, both lotteries and keynote delivered initiatives to strengthen the customer proposition. Now I'll hand over to Adam for the group results in more detail.

cash balances. Following the Victorian licence renewal, interest expense will rise materially in FY27. Profit after tap for pre-significant items declined 6% and as Wayne mentioned, directors held the full year dividend at 16.5 cents per share. Significant items, $58 million after tax, are set out in Appendix 1, and these mainly comprise the ACT licence impairment plus reorganisation costs. Moving to slide number 10, and our EBITDA result reflects the underlying strengths of our overall portfolio. Jackpot turnover adversely impacted EBITDA by $88 million versus the PCP. Factors we control offset most of that impact, limiting the year-on-year EBITDA decline to $13 million. Strong pricing changes to our two biggest games, including excellent price retention from the late FY25 Satellite Lotto change and eight months of the Powerball price increase. Our base games were resilient, with continued momentum in instant scratchets and lucky lotteries. Keno delivered another record year, with retail visitation and in-venue improvements sustaining growth. Lower OPEX, reflecting ongoing discipline and overall focus. So in summary, these elements enable the business to manage the jackpot volatility with diversification across our game portfolio, channels and customer segments, providing earnings stability. Moving on to slide number 11, and there are a few key points on this slide. OPEX came in at $296 million below last year. That reflects disciplined cost management, including the benefit of optimisation activities which remove structural costs from the business. This was accompanied by actions taken in a low jackpot environment with advertising and promotion and incentives approximately $10 million lower. We're expecting OPEX and FY27 to be between $305 and $315 million subject to jackpot outcomes. FY27 will benefit from labour savings tied to the recent operating model changes will reinvest some of these savings to drive long-term, top-line growth. Secondly, the dividend. As Wayne said, we manage the business for the long term and look through jackpot variability. Holding the full-year dividend reflects the board's confidence in the business. From FY27, we'll move to a payout ratio that's based upon net profit after tax, pre-significant items, and adding back licence amortisation after tax. This is a more cash-based measure that fully reflects our cash-generative nature and supports the consistent, reliable dividends that are a critical element of our capital management framework. Leverage and interest. Since the merger, we've held the leverage near the bottom of our three to four times target range. thereby preserving capacity for the Victorian licence extension. Now the Victorian licence has been renewed, leverage is likely to increase above the long-term target range. Reported leverage was 3.1 times at the 30th of June 2026. Adding in the cost of the Victorian licence and normalising for jackpots, adjusted leverage was 4.2 times. However, we expect to deleverage over time and return to the target range. supported by both earnings growth and free cash generation. The new debt will also materially increase interest expense in FY27. Our average interest rate is currently 5.8% and new debt is expected to be at higher rates given where basis rates are now and likely margins for tenants of anywhere up to 10 years. Finally, Standard & Poor's reaffirmed our BBB Plus credit rating after the licence extension, reflecting the structural de-risking that it provides. So to summarise, our balance sheet and strong credit rating is a fully debt-funded Victorian licence. And in a year of unfavourable jackpots, we held the dividend and showed the cost and capital discipline it would expect from us as we focus on delivering long-term value for our shareholders. Thank you and back to Wayne.

Thanks Adam. Now let's turn to the segment starting with lotteries on slide 13. As the chart shows, the lean jackpot run for Parble and Oslotto was estimated to have had an $80 million impact on VC versus model expectations. Despite that, what I think is important to take away from the slide is that where we control the levers, we performed well. Our pricing strategy and reduced OPEX is clear evidence of that. Slide 14, as you'd expect, fewer larger jackpots reduced overall customer numbers and turnover. I want to touch on the key distinction between retained and new or reactivated customers here. There are two cohorts that behave differently. Retained customers are the most valuable group. They typically spend around five times more than new or reactivated customers. This cohort remains quite resilient and has grown over time, compounding at about 3% a year since FY22. and moving within a very narrow band throughout. This points to a structurally healthy core, even through softer jackpot periods. New and reactivated customers, on the other hand, swing more with the jackpot cycle. Customer is a herometric. How many we have, how engaged they are, and what they're worth to us. And we've set ourselves a very simple target, more customers playing our games more often. More than 4 million Australians play our games each year who aren't registered today. So we're very focused on this opportunity. Some of the recent initiatives the teams implemented have cut friction and make it easier for customers to sign up for us to reach them. In terms of channel, we continue to benefit from the shift to digital with digital share growing 90 basis points. That's notable given jackpots, which skew stronger to digital, had lower turnover this year. Slide to theme, looking at our base games, a really pleasing performance, up 5.6% on the past year. Saturday Lotto was very strong, as were Instant Scratchits, which grew almost 8%. That's referenced in Appendix 3, which sets out the turnover performance of each game. We have renewed Momentum and Instant Scratchits. It's a great category. It's retail only. and the team have done an excellent job in extending the product's appeal and we see even more opportunity for improvement across the ticket range. We touched on how we intend to do that on slide 18. Slide 16 now. These charts really speak for themselves when it comes to the softness of the offers in both jackpot games. Oslotto was especially soft against the tough FY25 comp. More than half its draws sat at the $3, $4 or $8 million level where the offer is naturally less attractive than higher levels. We're addressing Oslo directly and more on that shortly. Slide 17 is new and shows exactly where the unfavourability occurred. By coverage we mean how many of the draws possible combinations are covered by tickets sold and allowing for the fact that some players have the same numbers. To illustrate, take the Oslotto draws between $15 and $40 million, where the average coverage was just 27%. This means there should theoretically be a winner only 27% of the time. The actual rate was double that. 54% or 13 of 24 draws had winners. A similar story for Powerball. As a result, we didn't reach the very large offers. $100 million plus for Powerball or $50 million plus for Oslotto where turnover grows the fastest. As we've said, this is variability and we expected it to, we expect it rather to even out over time. In fact, since the business listing, the aggregate variation over those five years nets out at zero. In other words, outcomes tend to regress to the mean over time. Now, if we turn to slide 18, One of the things this business has done really well over time and is a key strategic differentiator for us is optimisation through price. It's a proven and repeatable playbook where we change against subscription price and lift prices at the same time. Our recent changes to Saturday Lotto and Powerball are working as planned. Coming up, Set for Life relaunches next month, subject to regulatory approvals. It's already a strong product and we're going to make it even stronger. We're now going to give winners an extra $200,000 up front and a further $20,000 in Division 2. It's tested well and a 10 cent price increase will support that next evolution for that game. Oslotto will be next. We're targeting a price and matrix change with launch plan for the second half of calendar 2027 subject to all regulatory approvals. Oslotto plays an important part in the portfolio as one of two weekly jackpot games. This duality increases the likely frequency of large jackpots and our ability to stretch the customer proposition. So following the successful Powerball changes, we see a timely and compelling opportunity to optimize Oz. Now if we turn to Keno on slides 19 and 20, the growth story continues against the prior year that had a really strong Keno classic jackpot run. The pubs and clubs continue to experience good visitation. were sought to gain share of Wallet by making the keynote in-venue experience more visible and more engaging. As for online, as many of you are aware, legislation was introduced in federal parliament by the government to ban online keynote products as part of broader gambling reform. Parliament's currently considering the bill. The full year impact of this discontinuing online keynote for us would be circa $25 million of EBITDA based on FY26. our response is to double down on keynote and licensed venues. We have long-standing relationships with venues and we're well and truly embedded in the Eastern Seaboard pub and club ecosystem. Now, if we bring it together, let's recap our strategy on slide 22. Here's the logic and what sits behind the three clear pillars. Pillar one is about strengthening what we have. That's renewing and growing what we already do well, the core lottery and keynote offer. Any adjacent opportunities would be looked at selectively, only where our licenses and brands can compete. We're not chasing markets where we lack a clear edge or aren't sustainable. Pillar 2 answers where new growth comes from. That's digital. That's where younger adult Australians, where we have the most room to grow and where margins are attractive. We want to create digital experiences that customers want to return to and play, not just transact with. And pillar three is about delivering the first two by modernising our operations, maintaining our expanding capital discipline and building trust. Four capabilities support these pillars and make the strategy executable. Slide 23 lists this year's priorities. In lotteries, it's investing in product and marketing to drive participation and know more of our customers. It's also about continuing to invest in retail and that critical connection between the retailer and customer. In digital, we have a strong pipeline of initiatives backed by a new team. One of our biggest opportunities is social play, turning a solo experience into something that people want to share. Syndicates, digital gifting, et cetera, there's a lot we can build here. There's two features about to go live on the Lot app in line with being more about entertainment. The first is the reveal. It turns checking the results on the app into a more dynamic event rather than a transactional type of notification that says whether you've won a prize or not. The second is play pick, which can make number selection far more engaging. Rather than tapping numbers on a grid or letting a quick pick decide, customers can pick their numbers through quick interactive games. The idea is picking your numbers should feel playful and entertaining, not just functional. And we're investing confidently in Kino, rebuilding it around licensed venues to make it more entertaining and deliver really simple social play. One example is our planned BYOD model, a customer-led digital solution that gives customers more choices in how they play Kino within a pub or a club. We also expect it to expand our reach into new venues So lots of upside from that initiative alone. As for what we've seen so far in FY27, jackpots have been off to a slow start, but the underlying health of the business remains strong. We haven't seen anything in the past seven weeks that changes our expectations for the business or our approach to managing it. So in conclusion on slide 24, the financial performance in FY26 was resilient. Where we controlled the levers, we performed very well. The Victorian license extension in 2068 strengthens our infrastructure-like characteristics further. Our new operating model gives us three verticals with clear ownership and accountability and an in-flight roadmap and clear indicators to track progress. On a final note, I'd like to thank our team for their hard work in contributing to this result and we'll now open up the line for questions.

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. The first question comes from Rohan Sundaram with MSC Financial. Please go ahead.

Okay, thanks for that. Just one question, Wayne. I take on board your comments that How would you describe the consumer environment at present? I appreciate the underlines look quite solid. I ask in with regards to the 4% reduction in retained customers, just wondering is there a luck or a jackpot aspect to that or how much of that would you actually attribute to macro and how hard you have to work?

Good question, Ron. We haven't seen anything in the data, in our data, Anyway, that would sort of give us cause for concern. Yeah, some of those retained customers, obviously, they're not completely jackpot immune. One of the things that gives us confidence in current trading performance is the smaller games. And when we look at Instant Scratch, it's in particular, they're still doing very, very well. But, you know, and as you guys probably know, lotteries are traditionally... resilient through consumer downturns, economic downturns. But I wouldn't – we haven't seen anything in our data, but we're obviously cognizant of it. We're on out visiting retailers. It's tough out there in general, but nothing of concern in what we're seeing coming through. We'd just like a few more jackpots, Rowan. Cheers, Lane.

Thanks.

The next question comes from David Fabris with Macquarie. Please go ahead.

Hi, Wayne. Hi, Adam. Just wanted to focus on costs, actually. I mean, you've done a great job on costs and appreciate the guidance. I'm just curious, does the FY27 guidance have the full run rate of the recent cost initiatives? Will some of that flow into FY28? And then in addition to that, should we expect any net benefits from AI? flowing through. I guess I'm trying to figure out whether that call it 300 to 350 mil range is the kind of zone we should be thinking about beyond 27 with some of those moving paths.

Yeah, hi David, it's Adam here. Thanks for your question. Yeah, so with regards to the op model changes, they've sort of benefited a little bit in this year but will have benefits flowing into next year and a bit is basically flowing back into FY28 as well. They're taken into account with the overall range. Effectively, we've talked about it before, some of those savings get reinvested back into the business. But it's not just the op model. We've obviously had a program of optimization looking at other costs or opportunities within the business over a period of time as well. And that's all kind of reflected in that overall range that we've provided there too. I don't want to get into the, you know, looking out beyond FY27 at this point. and you probably just need to take into account that the range also reflects the fact that not only did we remove structural costs out of the business but we did have some jackpot related actions that we took for this year that are called out there between advertising and promotion and incentives that in a model where you go back to main reversion they'll come back into the picture as well.

Yeah, got it. Okay.

And whilst I've got you, Adam, just on the Vic licence payment, I mean, are you able to give us any indicative range to consider for the debt costs? I mean, obviously you've suggested it's going to be above that average of 5.8% currently, but any range might be helpful because obviously that's going to have an impact on our net interest costs in our forecasting.

Yeah. Thanks, Dave. Yeah, another good question. At the moment, it's a bit dependent upon markets and timing of takeout of the existing facilities within that. So we're not really giving a range other than saying given where base rates have moved and for tenants for periods over and above, you know, up to that 10 years, it'll be north of the 5.8. So I can't be any more specific at this point.

Yeah, understood. And just my final question, just on Kino. I appreciate you've reiterated the 25 mil EBITDA impact from exiting the online business, but obviously you've got the refresher, the retail products and offering going on, like the new terminals and BYOD. In the coming years, do you think that these initiatives can cover that impact, or should we be thinking about Kino being kind of below the adjusted run rate once you take out online Kino?

I think it's too early to say, David. We're going through that. We're going to be launching or trialing rather BYOD in Victoria in November and we'll provide sort of updates as we go. But as I've said in the past, we've now got a focused team on Kino and just improving the visibility and the product presence in venue we think will do a lot. We've got great relationships with clubs and pubs around the country. We'll provide more data as we can in terms of how those initiatives are rolling out, but I wouldn't want to go beyond that at this stage.

Perfect. Appreciate the insights. Thank you very much.

The next question comes from Justin Barrett with CLSA. Please go ahead.

Hi, Wayne. Hi, Adam. Wayne, in your, if I can say, key priorities for lotteries, you talk about the review or extension of core times for Powerball, Oslotto and Salewa. That was something, if you could expand on that point a little bit for us, please.

They currently 7.30... and we're looking to push them out by about an hour and a half to 9 o'clock. So...

Okay, so you're not... Yeah.

Yeah, yeah, yeah. So there's, you know, it's not much more complicated than giving people another 90 minutes to get their ticket. And so we've heard from customers that they didn't get into the draw because they're picking the... I know from my... picking the kids up from water polo or something or rushing around or trying to get dinner ready. So it's really just listening to customers and giving them another 90 minutes to buy a powerful Oslotto ticket. And it seems to be something that customers want and a bit of a no-brainer.

Yeah fantastic thanks for that and then really appreciate slide 17 of your pack today around these mid-level draws. I guess my question in relation to that is that my understanding is that those mid-level draws it does have an impact on your prize reserve funds. So I just wanted to ask I guess in relation to Powerball and Oslotto has that impacted or has this trackpot line impacted your prize reserve funds across FY26, and therefore, again, I appreciate it's on the edges, but I guess it impacts your ability to accelerate chatbots next year.

We've been prudent with the prize reserve fund. We haven't got aggressive with sequencing. So the PRF balances are robust and sort of average over a long period. So we've taken a very prudent approach so we've got no concerns around the price reserve funds and in fact we'll look at over the coming months we may look at deploying some of those PRF balances maybe not maybe different to how we've done it in the past as well so there's a few levers that we have but we've just taken a very the business has handled what has been a statistically awful period very, very well and we've taken a very measured approach. We're focused on execution and we've really controlled the things that we can control. But the direct response to your question is that we've got no issues with the PRS and that's partly because we haven't been overly aggressive in terms of the way we look at sequencing.

Fantastic.

Thanks, guys.

The next question comes from Adrian Lemming with Citi. Please go ahead.

Hi, good morning, Wayne and Adam. I was just hoping you could talk to the progression of like-to-likes for Powerball since the price increase. From what we can tell, the retention was extremely high in the first few months, but then it's faded in the last six months. Are you able to talk to that progression and where you might see the exit rate, please?

Yeah, well, we're looking at over, as you've probably heard me say before, we don't sort of want to sort of bookend, you can sort of bookend this business in sort of different periods. So we look at it, first and foremost, we look at it over the sort of the medium to long term. We need, quite frankly, we need some runs on Powerball to really see how the changes have played out. We are assuming that the statistical gods will shine in our favour at some point and we'll get some $100 million runs. Over the past A few months, there have been weeks where we, Oz Lotto, or even Saturday Lotto, at some points have outweighed the Powerball jackpot. So you see that trade down slightly. As you would expect, we have a cohort of customers that just choose the biggest jackpot prize on offer during the week. The data that we're giving you is over the roughly nine-month period. Any sort of softness that we've seen in the past few months has typically been on the week-by-week basis, has typically been because Oz or Saturday Superdraw have outweighed Powerball.

Thanks, Wayne. And can I just ask a quick follow-up on the Oslotto side? Because it does seem it was maybe down double digit in the second half on the like-for-likes. And I do understand it's a tough comp. But, like, obviously, there'd be a lot of registered players who'd be playing both Powerball and Oslotto. So I was wondering if you've done any analysis to see whether maybe, you know, those players are pulling back a bit on Oslotto since the Powerball pricing. Are they kind of managing to a budget? given that price increase, please.

I haven't seen any of the data.

Okay. All right. Thank you.

The next question comes from Andre Vermeer with UBS. Please go ahead.

Thank you, good morning. Maybe a question for Wayne. On slide 23, FY27 key priorities, there's a reference to reviewing the retailer commission structure. So I'm curious to understand if there's any particular pain points that you're seeking to address there at the moment and is the scope as broad as just changing percentages or is it something different to that?

Thanks Andre. It's broader than that. We're in dialogue with retailers and their respective associations at the moment on it. It's really just the way, and so I don't want to go into too much detail, but just think of it as reflective of strategy. So we want to ensure that we're all rowing in the same direction. and we've got, for instance, Andre, we've got a stated objective of getting more registered players. We want people to register. If they win, we want to be able to find them. We want to be able to pay the prizes. We want to be able to notify someone that their favorite retailer has just sold hopefully a $100 million parable prize. So a lot of our strategy, as you know, is around having direct relationships with our customers. And in the broadest possible sense, we just want to make sure our commercial arrangements with our retail partners are commensurate with that.

Okay, and then if I could just stay on that slide, wondering if you could provide a status update on the Greenfield app, you know, with the launch for first half of 28, that's conceivably a year away. So I'd be curious to understand where you're up to and sort of what the risks are around, especially the time.

Well, yeah, we're working on it. We're sort of, with the digital program, were sort of attempting to sort of chew gum and walk at the same time. So you're going to see a number of drops under the current infrastructure that we have in place. Next month, in fact, you'll see... We showed you some of these at the Investor Day, the PlayPick and DrawReveal. They'll be launched next month, second half of the year. Under the current digital app, there'll be... Social Play, Digital Guesting and Autoplay. What we don't want to do, Andre, is just go out and build the same thing that we have today. So a lot of the work at the moment with the team is around looking at what the app ought to be. A lot of people are getting excited because they think they can build an app in two weeks with AI. We want to build something that people want to use and come back and engage with. The other thing is when we build it, it needs to be AI ready and have all of those necessary tools sort of embedded in it. So we will, on the app, we will do it well. We will do it efficiently. And I think around, probably around this time next year, we'll be close to launching it. And in the meantime, and we're not stopping doing everything else, right? So in the meantime, we've got a, you know, I think a very sensible and commercially aggressive list of improvements with the current infrastructure that we have in place today. You may have already, and I know you're a big lotto player, Andre, but you may have already seen some improvements in the app UX already. And this is the benefit of the op model change. We have a a very excited, pumped-up, energetic digital team. And we want to create, yes, certainly the best app for this product in Australia. Okay. Thank you.

The next question comes from Kai Ehrman with Jeff Rees. Please go ahead.

Morning, Wayne and Adam.

Just one from me regarding products. You've obviously flagged the upcoming Oslo changes you're working through and done some work on Instant Scratchers to date, which you're seeing success with. Do you see any other opportunities in the portfolio to refresh or improve products or potentially any new products ideas that could fit within your existing portfolio going forward?

The short answer is yes, but we're not in a position to sort of get into them today. And again, based on the op model changes we've made, we have a lotteries team now and they are focused in terms of what else. I think I would like to be able to present a roadmap that goes beyond the is just the next 12 months, so to speak. So we've got four. There's opportunity to do more with what we've got. And as you've probably heard me speak about before, we sort of try to compartmentalise them into three things. How do we improve the experience of the products we have today, right? And that's examples with the digital experience, some of the digital changes that are going to work great for retail players as well. at the draw reveal and things like that, moving into changes to existing products and then EMPD. Our focus at this stage is on those sort of first two buckets and EMPD will follow at some point in the future.

Thanks, Wayne. That makes sense. And maybe just on the digital penetration phase, you obviously saw a pretty strong outcome there. here despite this sort of week of jackpots. How much of that do you think is driven by some of your recent initiatives you're doing in digital and then with more initiatives to come? Do you have a sort of view on how high that could get to in the next couple of years?

I think what you've seen through FY26 is largely organic. I think it's just more of a preference shift. I think at the end of... This current financial year I think you'll get a better sense of changes that we're making and the impact on those. Where it gets to is where it gets to. We're not pushing people one direction or another. A large part of what we do is marketers and the biggest job of a marketer is to listen. and to listen to customers. And so we'll just try to understand our customers as well as we can and respond. And there is, yeah, naturally a preference, a digital preference that goes along with that.

All right.

Thanks, Wayne.

The next question comes from Mark Wilson with RBC. Please go ahead.

Thanks very much, Wayne. Just with online keynotes, just wondering what your approach is to the point where you've got to exit that business, and will there be any sort of major restructuring, redundancy costs as a result of exiting that business?

No. No, we've... We've factored it in already. So I think the current round of restructuring was cognizant of this. We assumed this change. And it's also reflected in our investment in that online channel over recent months as well. Great.

And so you just run it as per normal up until the end of December?

Yeah. Let's get through the parliamentary – I know it's imminent now, but we'll just sort of get through the parliamentary process and then the working assumption is that we shut it off at or before when we're told to.

No, no, thank you. And then just on the opportunities to reinvest in the business, whether it be OPEX or CAPEX, what are the key items that you are focusing on?

They centre around the customer experience. One thing that we're doing, just in general terms, very general terms, just improving the customer experience. And we take this vision of where Australia comes to play very seriously. We take the mission of giving people more reasons to come back beyond waiting for a jackpot very, very seriously. We've rolled out digital signage. We're actually trialling a different type of digital signage in stores in the coming months and clearly The app and the digital assets that we have are an essential part of that reinvestment, both in terms of online play as well as the app being a really, really strong compendium for in-store play as well. That's great. Thanks very much.

The next question comes from Matt Ryan with Bear & Joey. Please go ahead.

Oh, thank you. I saw that base games were up almost 6%, which is a bit more than we normally expect. Just kind of a new thought from what's driving that?

I think it's a good question, Matt. I think it reinforces the strength of the franchise we see.

So, yeah, whilst...

We haven't had the headline jackpot numbers. It gives us confidence in the core franchise and people still want to engage, spend $15, $20 a week and play the lottery. There have been some intentional, a lot, intentional work around instant scratchage range. I think you've heard me talk about before that I think there's runway there to do more. So whilst a lot of the airtime is taken up by Oz and Powerball and like the likes and there's an awful lot of people in the business that work on these base games. think about them very hard and work with our retailer outlets, work with, we've got cross-sell going through the digital channels now on them. So there's lots of small things that we can do to make the boat go faster. And I think you see that reflected. And to the point earlier, from the earlier question, this is what also gives us confidence in the underlying strength of the franchise through what is undeniably some volatile consumer sentiment moments.

Great. And then maybe just a question on the next 12 months. I think you highlighted maybe marketing costs came down a little bit in the past 12 months, presumably on the poorer jackpots. Are there any other costs that might come back for the more jackpot normal environments?

I think it would mainly be advertising and promotions. Nothing, Adam, I don't think there's anything else of materiality.

Yeah, all I would add to that, Matt, we did call out there's a benefit from not only AMP from Jackpot Radar, but incentives were impacted as a consequence of the Jackpot outcomes as well. So both of those items factor into the guidance that we've given for FY27 objects.

And does that, do those incentives fall in the advertising and promotion part?

No, the staff used to refer to it.

They're employment costs.

Yeah, yeah.

Okay, great. Thank you.

The next question comes from Charles Strong with Jardin. Please go ahead.

Morning, Wayne. Morning, Adam. I'm just wondering, is there a particular cadence you're looking to on game refreshers? Just noting they're set for last to come in September and Old Flotto in the first half of 28.

There's a... The short answer is no. The longer answer is that we would like it to be not one a year. So there's... Some of the restrictions we have around the regulatory environment, we operate in the legacy tech. One thing that we haven't spoken a lot about in the past is we're in the second year of a CapEx program. Clearly, I've spoken a lot about the digital assets, but we're replacing all our terminals. All of those terminals have software on them. We're upgrading our data centre, a lot of our infrastructure. So there's a lot of plumbing in the background that we don't talk a lot about and a lot of people in the business do a heck of a lot of work on. So we've got some things that restrict us, but I wouldn't read too much into sort of once a year. We would like to be making changes more often than that going forward.

The next question comes from Sam Bradshaw with Evans & Partners. Please go ahead.

Hi, good morning, Wayne and Adam. Just wondering if you can give a comment on how you think your position for ongoing gambling reforms beyond online care, which I suppose you've already touched on, and if you have a strategy to capture some of the spend from adjacent lottery categories that's expected to be shown. Thanks.

Yeah, as I said earlier, this is going through a parliamentary process. I sort of put my views in the public domain. What we've certainly looked for is we favour highly regulated, consistent markets, okay? And we're being the company, and since joining, and since me joining, we've been very consistent about that. It's in the last rows, we think, of the parliamentary process, and I'm not going to comment on it much further than that. We're not, the second part of your question, we're not factoring in anything at this stage in terms of a shift in expenditure other than the, we've taken a very conservative approach to it, I think. We've flagged the online keynote which is clear and we haven't made any other assumptions beyond that.

And then maybe just a little bit following on, there was a one-off cost for Lottery's product development that was flagged due to the future viability given the emerging reforms. Are you able to kind of tell us what those product developments were?

As you'd expect from any company, we have had a number of things, you know, a number of product ideas that have been worked on. When I started, we looked at, we've obviously reset strategy. And at the same time, we've looked at where we think the sort of the tides are moving in terms of gambling policy in Australia. And we're not going to continue with some of those initiatives But that's as far as I'm going to go.

Great. Thanks, Glenn.

All right.

There are no further questions at this time. I'll now hand it back to Wade Pickup for closing remarks. Please go ahead.

Well, look, it's been a tough year in terms of what we were doubtless, but I think – Solid results. I know the team. It's really about what we're focused on is about the future. We've got a team that is very engaged and very focused about execution. And thank you for your time today. And I look forward to catching up in the future.