TLC - The Lottery Corporation

[System]

Following a strategic review, the board of Tabcorp Limited (TAH) resolved to demerge its Lotteries and Keno business and on 12 May 2022 Tabcorp shareholders overwhelmingly approved the demerger of The Lottery Corporation Limited from Tabcorp.

The Lottery Corporation is Australia's leading lottery and Keno operator with a portfolio of high-profile, recognised brands and games, with 742 expected employees as at 14 February 2022.

The Lottery Corporation holds exclusive and/or long-dated lottery licences and approvals to operate in all Australian States and Territories (excluding Western Australia), with a distribution network of 3,863 lottery outlets (as at 31 December 2021) as well as its digital platforms.

The Lottery Corporation is also licensed to provide Keno products to venues across New South Wales, Victoria, Queensland, South Australia and the Australian Capital Territory (including digital approvals in the Australian Capital Territory and Victoria). Keno can be played in 3,409 venues (as at 31 December 2021) as well as online.

It is anticipated that TLC will list on the ASX during May 2022.

Home

Australia's largest lottery operator and one of the highest-performing lottery businesses in the world. The Lottery Corporation is listed on the ASX:TLC.

www.thelotterycorporation.com

 

[Dona Ferentes]

Listing date	24 May 2022 ; 11:00AM AEST ##
Company contact details	http://www.thelotterycorporation.com/ Ph: (07) 3877 1010
Principal Activities	Australian lottery operator and provider of Keno products with operations in all Australian states and territories except for Western Australia, and distribution through retail outlets, Keno venues and online.
GICS industry group	TBA
Issue Price	N/A
Issue Type	Ordinary Fully Paid Shares
Security code	TLC
Capital to be Raised	N/A
Expected offer close date	N/A
Underwriter	N/A

as it is a spin-off, there's no capital raised. Just got to do the legals

 

[Dona Ferentes]

Was thinking, the three letter ASX code may or may not be appropriate. Quick search on TLC as a Three Letter Acronym = Tender Loving Care

Or could it be

• Tax Loaded Calculation

Maybe the ASX code could be TLA

• Tender Loving Algorithm
• Tax Levying Algorithm
• or OAY - Odds Against You, or FGF - Feel Good Factor?

 

[divs4ever]

i am picking TLC in the tipping competition for June

i will get some of these because i hold some TAH , however i bought TAH as a 'safe-haven ' using the theory SOME people will try to gamble their way out of the coming economic downturn ( it leverages the theory addicts will still feed their addictions , so gambling , alcohol and tobacco tend to resist the steepest of falls )

so in June i will be looking to see if i can add to my TLC holding at a realistic price

 

[Dona Ferentes]

TLC up and running... Tabcorp spin-off Lottery Corp is trading at $4.60 per share near lunchtime after the lotteries and Keno business hit the ASX boards at 11am.

Lottery Corp stock has swung between $4.49 and $4.69 in the open bids. According to a presentation, on a pro-forma basis Lottery Corp posted $611 million in EBITDA on revenue of $3.2 billion in the year ended last June 30.

 

[divs4ever]

was hoping it would launch much lower than this , and doubly annoying i am missing my top-up price for extra TAH ( by a few cents )

was a fraction too cheap at the open and even when i lifted the bid ... no buy ( yet )

 

[Dona Ferentes]

Some comment:

The nature of The Lottery Corporation’s long-dated monopoly licences and its steady, defensive cash flows give it infrastructure-like qualities that should lead it to eventually trade at a higher earnings multiple than Tabcorp did.

Before the demerger, Tabcorp was trading on an enterprise value to EBITDA multiple of 12 times, whereas Macquarie values The Lottery Corporation at 17.6 times.

But recent history suggests the board and management could soon find themselves fending off a takeover advance.

Not only are infrastructure and infrastructure-like businesses frequently the targets of big investors such as superannuation funds and private capital firms, but demerged companies have also been popular takeover targets; analysis of 28 demergers by Perpetual found one of the two companies created in these splits was acquired within a few years on no less than 18 occasions.

 

[bluekelah]

was hoping it would launch much lower than this , and doubly annoying i am missing my top-up price for extra TAH ( by a few cents )

was a fraction too cheap at the open and even when i lifted the bid ... no buy ( yet )

whats the dividend been like for tah

 

[divs4ever]

well my average share price is $2.56 add in the 2.5% discount for the DRP so acceptable for me ( SO FAR )

DIVIDEND TYPE	DIVIDEND AMOUNT ($)	FRANKED	EX-DIV DATE	PAY DATE
Interim	0.065	100.00%	22/02/2022	17/03/2022
Final	0.070	100.00%	25/08/2021	17/09/2021
Interim	0.075	100.00%	22/02/2021	17/03/2021
Interim	0.110	100.00%	24/02/2020	18/03/2020
Final	0.110	100.00%	21/08/2019	20/09/2019
Interim	0.110	100.00%	18/02/2019	13/03/2019
Final	0.100	100.00%	15/08/2018	14/09/2018
Interim	0.110	100.00%	13/02/2018	13/03/2018
Final	0.125	100.00%	11/08/2017	18/09/2017
Interim	0.125	100.00%	07/02/2017	15/03/2017
Final	0.120	100.00%	10/08/2016	20/09/2016

now since TAH has dropped so much , one must think smaller divs in the near term expected ( racecourse attendance in the last two years has been impacted )

 

[divs4ever]

while TLC is still an unknown quantity ( div.-wise )

 

[bluekelah]

well my average share price is $2.56 add in the 2.5% discount for the DRP so acceptable for me ( SO FAR )

DIVIDEND TYPE	DIVIDEND AMOUNT ($)	FRANKED	EX-DIV DATE	PAY DATE
Interim	0.065	100.00%	22/02/2022	17/03/2022
Final	0.070	100.00%	25/08/2021	17/09/2021
Interim	0.075	100.00%	22/02/2021	17/03/2021
Interim	0.110	100.00%	24/02/2020	18/03/2020
Final	0.110	100.00%	21/08/2019	20/09/2019
Interim	0.110	100.00%	18/02/2019	13/03/2019
Final	0.100	100.00%	15/08/2018	14/09/2018
Interim	0.110	100.00%	13/02/2018	13/03/2018
Final	0.125	100.00%	11/08/2017	18/09/2017
Interim	0.125	100.00%	07/02/2017	15/03/2017
Final	0.120	100.00%	10/08/2016	20/09/2016

now since TAH has dropped so much , one must think smaller divs in the near term expected ( racecourse attendance in the last two years has been impacted )

Looks like a very good yield if you bought at 2.56 giving 8%plus precovid. Might be a good time to buy in as business and divs should pick up significantly in 2022 post covid lockdown and restrictions? Or will the coming recession/stagflation mean continued low racecourse attendance as punters have to tighten their belts.

 

[bluekelah]

oh just had a look, TAH is pending demerger with TLC lol.. I'll never win the lotta, but maybe compounding TLC long enough might make one a millionaire

 

[divs4ever]

Looks like a very good yield if you bought at 2.56 giving 8%plus precovid. Might be a good time to buy in as business and divs should pick up significantly in 2022 post covid lockdown and restrictions? Or will the coming recession/stagflation mean continued low racecourse attendance as punters have to tighten their belts.

i bought extra TAH today ( @ 96.5 cents in the after market auction ) i have either torn up some dough , or got a good deal

i will still get SOME TLC ( via the demerger ) , but time will tell if i picked the right horse to add to

some think TLC will be a take-over target , but rumors aren't offers with fine details

take care

 

[divs4ever]

TLC , is my March 2023 competition selection

unlike my usual strategy this month i do not have any current intentions of putting a TLC ( buy or sell ) order in the market

i do have a TAH buy order in though

i think TLC should benefit from debt-stressed citizens trying to gamble their way out of discomfort , will that translate into a higher share price , maybe

PS my success rate in 2023 is less than impressive , please take care

( i hold TLC courtesy of the TAH demerger )

 

[Knobby22]

TLC , is my March 2023 competition selection

unlike my usual strategy this month i do not have any current intentions of putting a TLC ( buy or sell ) order in the market

i do have a TAH buy order in though

i think TLC should benefit from debt-stressed citizens trying to gamble their way out of discomfort , will that translate into a higher share price , maybe

PS my success rate in 2023 is less than impressive , please take care

( i hold TLC courtesy of the TAH demerger )

I like your thinking on this one.
I know personally I am "investing" in Super 66 as it has jacpotted a few times and I want to pay off my home loan.

 

[divs4ever]

I like your thinking on this one.
I know personally am "investing" in Super 66 as it has jacpotted a few times and I want to pay off my home loan.

not that unusual a strategy , i observed this in the '60's/'70s growing up and remembered it when looking for counter-intuitive 'safe-havens to invest in waiting for 'that crash '

CWN i made a small profit in , DNA has been a train-wreck while TAH( and TTS ) and the demerged TLC have done OK for me 'in the good times '

 

[Dona Ferentes]

A view from Investors Mutual
The Lottery Corporation has existed as an independent business for less than a year, after it demerged from Tabcorp in May 2022. In our view the lotteries and wagering businesses were fundamentally different, so we were pleased when the board agreed to demerge the two businesses, after much lobbying from us and other shareholders. Since the demerger we think both businesses have improved their competitive position and proved their resiliency.

In its FY23 first half result The Lottery Corporation announced that group revenue was up 8% and both of its business segments (Keno and Lotteries) had grown in terms of customers and revenue. TLC announced an interim dividend of 8c and a special dividend of 1c, both fully franked.

The Lottery Corporation is particularly well placed to ride out these turbulent times. Here’s three reasons why:

1. Strong competitive advantage. TLC is the largest lottery operator in Australia and operates in all states of Australia except Western Australia. It has very high-quality, long-term, monopoly licenses across both Lotteries and Keno, which effectively shut out competition.
2. Resilient, recurring revenue. TLC has a loyal, engaged customer base that continue to use its products through all parts of the economic cycle. When large jackpots occur, participation increases significantly – 1 in 2 Australian adults bought tickets for the $160 million Powerball jackpot in October last year.
3. Good growth prospects. Its revenue grew by a healthy 8% over the last year, but what is more impressive is its profitability – group EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was up 16%. As more and more of its customer base buy tickets digitally, rather than physical tickets through retailers where they lose a percentage on commission, margins are improving. A few years ago around 15% of customers bought tickets digitally, now it’s 38%. As this trend continues TLC is likely to continue to improve its margins and will also continue to increase the data it holds on its customers, giving it a low-cost, effective direct marketing channel to its customer base.

While its share price has appreciated by around 10% since the demerger, we think it’s still reasonably priced, trading at 25 times price to free cashflow for a monopoly business with strong recurrent earnings, growing both revenue and profit.

 

[Dona Ferentes]

An extra ball has been added in PowerBall and the odds increase from 1 in 76 mill to one in 134 million.

The $150 mill jackpot didn't go off last week, so next week a possible $200 mill win

 

[peter2]

Note: JIN - Jumbo Interactive Ltd operates Powerball and is the recipient of the extra sales generated by these huge jackpots.

No doubt there'll be a gap opening on JIN after news that the Powerball jackpot has gone to $200M.

 

[Captain_Chaza]

Note: JIN - Jumbo Interactive Ltd operates Powerball and is the recipient of the extra sales generated by these huge jackpots.

No doubt there'll be a gap opening on JIN after news that the Powerball jackpot has gone to $200M.

I am in Next Week
I have an Idea that might work

I promise to disaclose my idea after I WIN

Otherwise I will Keep Trying until I WIN!