Pollard Banknote Reports Record Revenue for Q2 2024
Pollard Banknote Limited has reported its revenue for the second quarter reaching a new high of $137.8 million, an increase of $7 million compared to the same period in 2023. Combined sales, which include Pollard’s share of the NeoPollard Interactive joint venture, totaled $166.0 million, up 11.2% from last year’s $149.3 million.
Increased Income and Gross Margins
Pollard reported $19.9 million in income from operations, doubling the previous year’s figure of $9.9 million. The company’s gross margin for the quarter also saw improvement, rising to 21.0% from 15.9% in Q2 2023.
The company’s Adjusted EBITDA reached a record $32.3 million, marking a 46.2% increase from $22.1 million in the same quarter last year.
Pollard attributes these gains to its repricing strategy, which has allowed the company to secure higher average selling prices and improve its instant ticket business margins.
“We are extremely pleased with the performance of our instant ticket business during the second quarter, with significantly improved gross margins reflecting the impact of our focused efforts on repricing our contracts,” said John Pollard, Co-Chief Executive Officer. “We have repriced a majority of our contracts over the past two years and as these new contracts are now coming into effect, we are seeing gross margins increasing considerably. This trend will continue as more of the already repriced contracts come on stream.”
iLottery and Charitable Gaming Growth
Pollard’s joint venture with NeoPollard Interactive achieved $16.2 million in combined income before taxes. This growth was driven by organic contract portfolio expansion, even though there were fewer major jackpots like Powerball® and Mega Millions® during the quarter.
The company also highlighted the forthcoming roll-out of its West Virginia iLottery contract in the fall of 2024 and shared plans to introduce its proprietary iLottery game content with a major North American lottery in the third quarter.
Additionally, Pollard is actively engaged in discussions to offer this content to both North American and international lotteries in 2025.
Strategic Acquisitions and Future Growth
Acquisitions remain a key part of Pollard’s growth strategy. In the second quarter, the company purchased electronic bingo gaming content to enhance its eGaming systems. Following the quarter’s end, Pollard acquired Clarence J. Venne, a leading manufacturer of bingo dabbers, to complement its charitable gaming offerings.
Co-CEO Doug Pollard noted that quality gaming content is fundamental to the company’s success across all product lines.“Acquisitions are an important component of our strategic plan and this was evident in the second quarter with the purchase of electronic bingo gaming content supporting our eGaming systems. Great gaming content is a cornerstone of Pollard’s success across all of our products and solutions.”
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