This week, Pollard Banknote issued its financial results for three and nine months concluding on September 30, 2023. For the third quarter of 2023, the company disclosed revenue of CA$128.7 million, which was 2.5% more than the CA$125.5 million in the same quarter of 2022. It also reported a record combined sales of CA$150.2 million or 7.9% up from last year’s Q3.
Pollard Banknote is a premier supplier of products and solutions to lottery and charitable gaming sectors. It is considered one of the largest providers of instant tickets in Canada and the world. Its specialties also include delivering bingo paper and pull-tab products to the charitable gambling industry and is also among the biggest providers of iLottery solutions in the sector.
Q3 in Numbers
During Q3, the lottery partner produced revenue of CA$128.7 million or just 2.5% over the CA$125.5 million reported in Q3 of 2022. Meanwhile, combined sales, including those from its NeoPollard Interactive joint venture, hit a CA$150.2 million or 7.9% better than last year. Income from operations reached CA$14.6 million, compared to CA$6.7 million in Q3 of 2022.
Additionally, it iLottery operations produced record combined income before tax of CA$14.3 million, an improvement on both Q1 and Q2 of 2023, and Q3 of 2022. Once Q3 ended its leading NPi joint venture was awarded its fifth U.S. iLottery platform contract by the West Virginia Lottery. The going online process is expected to start in late 2024.
Meanwhile, for the nine months ending on September 30, 2023, the company achieved sales of CA$383.7 million, compared to CA$355.3 million in the nine months ending September 30, 2022. Also, the cost of sales was CA$323.8 million for the same nine-month period of 2023 compared to CA$292.3 million in the first nine months of 2022.
However, the firm disclosed that gross profit decreased to CA$59.9 million in the nine months from CA$63.0 million in the nine months ended September 30, 2022. This decrease was mainly due to the result of lower instant ticket sales margins, with the impact of higher instant ticket average selling price compared to 2022 being more than offset by lower sales volumes.
Another Highlight from Pollard
In addition to the financial results, the lottery provider also recapped some of its operational highlights from the three and nine months ending with September 2023. One of those was powering Western Canada Lottery Corporation for the launch of CATAN® scratch ticket, which is based on the popular game brand CATAN popular among adults under 35.
The new CA$3 scratch ticket comes with popular symbols from the CATAN world, such as brick, wood, wool, ore, grain, and gold. With a familiar key number match game style, players must scratch hex tiles matching their rolls to reveal game symbols. Players can win up to CA$50,000, while there are also two development card bonus features which can provide instant rewards.
Source: “Pollard Banknote Reports 3rd Quarter Financial Results” PR Newswire, November 7, 2023