Pollard Banknote on track for strong 2023 close after Q3 growth

The leadership of Pollard Banknote is confident in the group’s strategy following continued growth in Q3 2023, with record income before tax for its ilottery operations.

Group-wide quarterly revenue rose 2.5% during the quarter from $125.5m to $128.7m, whilst adjusted EBITDA rose 22.8% to $24.8m (Q3 2022: $20.2m), driven by a record number of combined sales to $150.2m, up 7.9% from $139.2m the year prior.

These sales included Pollard’s share in the NeoPollard Interactive joint-venture, operated in partnership with ilottery provider NeoGames, which group CEO John Pollard noted had signed on its latest client, the West Virginia Lottery, during the quarter.

Meanwhile, Pollard’s own ilottery business also generated record combined income before taxation of $14.3m, marking a 43% growth rate on corresponding Q3 2023 income before tax of $8.2m.

John Pollard continued: “Our strong third-quarter results reinforce the value of our strategy focusing on the lottery and charitable gaming industry while expanding our product and solution portfolio.

”Quarterly records were attained in combined sales, adjusted EBITDA and iLottery income before income taxes. More importantly, our repricing strategy for our instant ticket contract portfolio continues to be successful, providing a gradual, positive impact beginning to be meaningfully reflected in our revenue and margins.”

Company leadership did note that high input costs ‘remain a significant headwind’ to its instant ticket product line, but added that it has not experienced any additional new cost increases since the start of 2023.

John Pollard remarked that it is ‘hopeful that this trend will continue’ and that costs will remain low, whilst Co-CEO Doug Pollard asserted that the group continues to see ‘positive demand in all our main markets, both printed and electronic, and of course ilottery’.

The Co-CEO further cited a ‘disciplined’ approach to instant tickets as being key to positive trading in Q3, and added that production volumes of these offerings will ‘continue to be at levels lower than recent quarters for the remainder of 2023 and 2024’.

Putting faith in its group-wide strategy and continued demand for ilottery solutions across the US lottery sector – home to 46 state lottery operators – Pollard Banknote is confident that it can replicate the successes of 2022, which saw the year close with record-high revenue.

“Our third quarter results reflect the strength of our various business operations,” concluded John Pollard. 

“Improving margins, growing sales and an expanding digital focus are key components in our strategic plan and will lay the foundation for ongoing success. Demand remains strong across our entire product and solution continuum. 

“We are very excited about the opportunities ahead and look forward to helping lotteries and charitable organisations generate funds for their good causes around the world.”