A plethora of contracts with prominent state-owned lottery companies drove a resilient quarter for Pollard Banknote according to the firm’s latest financial results.
The company’s accounts showed an increase in sales of 2% from $153.2m to $156.3m, and although its profit margins did take a hit, the firm remains in the black.
Pollard Banknote’s profit for the quarter came in at $28.1m, 10% less than the $31.4m recorded during Q3 2024, likely the result of increased operating expenses during the quarter.
The firm’s accounts show an increase in expenses across the board with administrative expenses up from $17m to $19.2m and selling expenses up from $5.9m to $6.5m.
A similar trend can be seen in the firm’s year-to-date figures, with sales up from $416.8m to $445.3m while gross profit took a hit of $5.8m to drop from $82.4m to $77.4m.
The firm remains confident, however, in the long-term nature of some of its biggest contracts, which should provide a solid financial bulwark against higher operating costs.
Notable developments for the company this year included a 12-year contract with the Belgian National Lottery, a scratch card provision deal with the California Lottery, and a licence awarded in the UAE.
“We are extremely proud that Belgium, a major European lottery, recognised the value of our state-of-the-art CatalystTM solution,” said Doug Pollard, Co-CEO of Pollard Banknote.
“This 12-year contract, with an estimated value of $289m, provides a complete suite of technologies including key components such as a central gaming system for draw-based games, management of eInstant games, player engagement technology, an instant ticket management system for warehousing and distribution, and a new iLottery platform.”
John Pollard, Co-CEO, said: “The award to Pollard of the contract for primary instant ticket supply by the California Lottery, one of the largest instant ticket sellers in the world, is a wonderful achievement and reflects the dedicated focus on innovation and service our team has made and lays the base for higher ticket volumes in 2026.
“The expected value of this 12-year contract, including extensions, is approximately $375m.”