Pollard Banknote has reaped the rewards of a successful FY24 built on the foundation of a cost effective business structure.
Full-year results
The lottery service provider saw record full-year revenue growth, with sales generating $557.1m – up 7.1% YoY from the $520.4m in FY2023. Net income ($35.2m) was also higher YoY, constituting an increase of $3.8m or 12.1% (FY2023: $31.4m).
Full-year Adjusted EBITDA was capped at an annual record of $114.5m, which was 25.4% more than the $91.3m from the previous year.
As a predominantly North America-facing company, most of Pollard’s revenue (70.7%) was generated in US dollars, including a portion of its international sales. Canadian/US dollar conversion rates in 2024 saw the US dollar valued at CA$1.359 compared to the CA$1.352 rate in 2023. The 0.5% increase brought $2.1m more in revenue relative to full-year 2023 results.
John Pollard, Co-Chief Executive of Pollard Banknote, reflected: “Adjusted EBITDA grew over 25% compared to last year, a substantial new record not only reflecting our improving instant ticket margins but also the results of investments we have made over the years in all areas including digital, and iLottery products and solutions.
“Our margins also benefited from a cost structure reflective of slightly lower cost inputs during 2024 relative to the previous year and we are hopeful of continued improvements in the costs of important inputs like paper and ink in the future.”
Combined sales, including those generated from Pollard’s NPi joint venture with Aristocrat, saw an uptick of 10.9%, reaching $665.9m compared to the total of $600.6m in 2023.
Q4 Performance
Quarterly results, while also predominantly positive, still suffered some setbacks compared to the same period in 2023.
Adjusted EBITDA for the quarter was $25.2m, slightly lower than the $25.7m earned in Q4’23. Pollard said that results were negatively impacted by production issues in the final months of the year related to instant ticket production affecting some of the large games.
Positive developments saw Pollard’s Q4 revenue go up 3.5% YoY to $140.3m. The combined quarterly sales from the NPi/Aristocrat joint venture went up 6.9% to $168.2m (Q4’23: $157.3m).
Pollard added: “Our fourth quarter results reflected lower volumes in our instant ticket business due to the timing of customer orders, certain manufacturing issues generated additional spoilage and the impact of implementation start-up costs for the Kansas iLottery which reduced margins during the period.
“These combined factors represent an unusual confluence of business events that reduced earnings from our fourth quarter expectations. We believe going forward for 2025 our instant tickets sales volume will be similar to 2024 levels, and our spoilage will return to lower historic levels.”
Overall, FY24 was a positive year for Pollard Banknote and its shareholders, with the company building upon its established market presence across North America.
The Strong full-year financial performance saw the company acquire 100% of the business of the charitable gaming bingo market Clarence J. Venne LLC for $12.6m. In a separate strategic move, Pollard was also awarded its first contract in the US with the Kansas Lottery for the provision of a full turnkey iLottery solution.
Pollard concluded: “2024 was a very successful record setting year for Pollard Banknote. Our vision of being the partner of choice for lotteries and charitable organisations drives our strategic focus and is the core of our success.
“We are very excited for the many opportunities that await us going forward to help our customers generate more funds for good causes.”