Pollard Banknote Limited is off to a great start in 2024.
The company reported its Q2 and H1 results this week, showing positive production in sales revenue, gross profits, net income, and EBITDA (earnings before interest, taxes, depreciation, and amortization).
One of the top lottery game suppliers announced record revenue in Q2 at $137.8 million, up $7 million year over year.
As new contracts kick in, as well as helping West Virginia join the list of states with online lotteries in H2, the future outlook is good for Pollard Banknote.
Multiple records set in Q2 for Pollard Banknote Limited
Pollard Banknote had a lot to celebrate during its Q2 investor report.
Highlights of the report included:
- Q2 revenue at a record $137.8 million
- Combined sales in Q2 at $166 million, another record and up 11.2% year over year
- Income from operations at $19.9 million, up $10 million YoY
- Gross margin at 21%, up from 15.9% YoY
- Adjusted EBITDA for Q2 at a record $32.2 million, up $10.2 million YoY
- Joint venture iLottery operations reached $16.2 million in combined income before taxes
John Pollard, Co-Chief Executive Officer of Pollard Banknote Limited, expressed his pleasure with the results in a press release, noting that more good things are to come thanks to renewed contracts that will kick in during H2 of 2024:
“We are extremely pleased with the performance of our instant ticket business during the second quarter, with significantly improved gross margins reflecting the impact of our focused efforts on repricing our contracts. We have repriced a majority of our contracts over the past two years and as these new contracts are now coming into effect, we are seeing gross margins increasing considerably. This trend will continue as more of the already repriced contracts come on stream.
“Despite the increased positive impact of higher average selling prices in the second quarter, we have not yet recognized the benefits of all of our repriced contracts in our recorded revenue. New prices in a number of contracts will not be reflected in our revenue numbers until the end of 2024. After repricing a majority of our existing contracts, there still remains contracts to be repriced, as their current end dates have not yet come due.”
Online lottery prospects continue to grow
While the overall numbers look good for Pollard Banknote, the iLottery income is certainly noteworthy.
NeoPollard Interactive is a primary iLottery supplier for a number of states. That includes:
- Michigan online lottery
- New Hampshire online lottery
- North Carolina online lottery
- Virginia online lottery
North Carolina just reported $1.13 billion in sales of its Digital Instants, which are instant win games online, for fiscal year 2024. The state is budgeting $2.2 billion in sales of those products for FY25.
NeoPollard will also be helping the West Virginia Lottery launch its online platform starting Oct. 6.
All-in-all, Pollard is excited about what is ahead for its iLottery partners:
“We continue to receive significant interest and positive feedback in our own proprietary omni-channel iLottery platform and game content. We are confident our ongoing significant investment and innovation in our solution will result in our continuing growth in iLottery.
“We are also excited to launch our Pollard iLottery game content with a major North American lottery in the third quarter and are in active discussions to provide game content to both North American and international lotteries in 2025.”
Photo by lucadp via Shutterstock
Graphic from Pollard Banknote Limited
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