Pollard Banknote Limited has published its 2021 Q1 financial update, with Co-CEO John Pollard reporting ‘very positive results’ in all of its business lines including a new sales record for the quarter.
For the three months ended March 31, 2021, the lottery product and service provider declared sales of $112.2m, which is the highest sales amount it has ever achieved in any Q1 and a 10% increase from the $102.2m achieved year-on-year. Combined sales, including its share of its NPi joint venture’s sales, attained $122.1m, up 18% from $103.5m in 2020.
Net income came in at $7.5m in the quarter, an $8.8m improvement from the net loss suffered in the same period last year. It also generated an adjusted EBITDA of $23.3m, reflecting the positive revenue and margin trends from 2020, up 45% on Q1 2020.
Co-CEO John Pollard commented: “Our first quarter generated very positive results from all of our business lines despite the ongoing headwinds generated from COVID-19, and our success is due to the dedication and hard work of our more than 2,100 employees worldwide.”
The provider’s core instant ticket business remained strong, driven by continued higher retail sales generating larger volume orders and a positive average selling price (ASP), especially in the US.
Pollard Banknote sales from its share of combined ilottery operations in Q1 increased to $18.3m from Q1 2020’s $6.3m. Its combined ilottery margin improved from $1.6m last year to $8m this year.
Pollard added: “Our core instant ticket business remained very robust, as lotteries throughout the United States continue to generate record revenue growth when compared to the same time periods pre-COVID-19. This trend started back in the second quarter of 2020 and has continued right through to the current timeframe.
“Ilottery continued its growth attaining a combined level of revenue, between all of our ilottery operations, of $18.3m, almost three times the combined revenue of the same period last year. Revenue growth was particularly robust in our newer contracts with Alberta and Virginia.”
The firm also reported that charitable gaming and diamond game revenue continued to be negatively impacted by COVID-19 related retail closures at the beginning of the quarter. However, during Q1, most retail outlets had opened and consumer demand was very robust.
Co-CEO Doug Pollard reflected upon Pollard Banknote’s partnership with its customers, calling it ‘a critical factor’ in its success.
During Q1, the company extended its instant ticket contracts with the Michigan Lottery and Loto Quebec, as well as creating a new partnership with the Idaho Lottery. It also signed a new deal with one of its long-standing customers, the Ontario Lottery.
In terms of acquisitions, Pollard Banknote completed its strategic acquisition of Next Generation Lotteries, a supplier of retail and ilottery platforms and games, as well the acquisition of Compliant Gaming, a provider of electronic pull-tabs.
Doug Pollard said: “During the quarter we closed a very successful share offering raising approximately $34.5m before expenses, an offering that was oversubscribed and provides us with both additional capital to invest in our vision as well as help increase our public share float, a long-term objective of Pollard.
“Acquisitions will continue to play an important role in our business plan, and despite recently closing two deals, totalling approximately $80m, we have significant resources available to pursue future opportunities.”
