Pollard Banknote has met shareholder expectations for Q1, ending the period with 16.3% year-on-year revenue growth.
For the three months ending March, the global lottery provider recorded total revenue of $146.2m, exceeding its commercial performance for the same period last year ($125.7m).
Gross profit was capped at $25.4m and represented 17.4% from total sales, compared to the $21.7m and 17.3% in Q1 ‘24.
Adjusted EBITDA was 29.1% higher than the earnings in the first quarter of 2024 ($23.7m), resulting in a total of $30.6m for Q1 ‘25.
Net income increased to $11.7m from $6.9m YoY, with income from operations going up 36.6% to $18.3m from the $13.4m in Q1 ‘24.
Commercial expansion
Successful operations were backed by several commercial milestones reached throughout last year within Pollard Banknote’s North American home market.
A 100% equity of bingo daubers manufacturer Venne was purchased by Pollard back in July for a total purchase price of $12.6m, which was funded by Pollard’s credit facility and cash on hand.
The next month of August saw the Canadian lottery provider being awarded its first US licence for the provision of a turnkey iLottery solution, partnering with the Kansas Lottery and launching together in February of this year.
Subsequent to the Q1 reporting period, Pollard also acquired 100% of the equity of Pacific Gaming and LIF Capital Group (Pacific) on 1 April, for the price of $10m.
This further solidified the company’s position within the North American bingo landscape, and poises it to rake in more market dividends for the rest of the year and balance out potential global economic downturns.
Pollard Banknote management explained: “We believe our current structure and business processes in place will largely mitigate any material negative impacts due to the implementation of protectionist trade measures including tariffs and counter tariffs.”
Confirming that M&As will play a vital role for Pollard Banknote’s long-term commercial sustainability when moving forward, John Pollard, Co-CEO, concluded: “Key acquisitions are an important strategy in our success, and this continued with the recent acquisition of Pacific Gaming to the Pollard Charitable Gaming Group.
“We remain active in identifying key businesses that are both strategically important in expanding our offerings and business operations, as well as generating appropriate financial returns.”