Pollard Banknote (PBL) Q1 2025 earnings summary

Executive summary

• Achieved record first quarter with combined sales revenue reaching CAD 177.7 million (up 17.7% year-over-year) and GAAP sales at CAD 146.2 million (up 16.3%), supported by the fastest iLottery rollout in North America for Kansas and strong digital and charitable gaming performance.

• NeoPollard Interactive joint venture delivered record results, especially in Virginia and North Carolina, with robust e-Instant sales and long-term contracts.

• Adjusted EBITDA rose to CAD 30.6 million (up 29.1%), and net income increased to CAD 11.7 million from CAD 6.9 million year-over-year; EPS was CAD 0.43 (basic/diluted) versus CAD 0.26/0.25 last year.

• Expanded product portfolio with the acquisition of Pacific Gaming, a leader in charitable bingo devices, and continued integration of Venne.

• Gross profit improved to CAD 25.4 million (17.4% of sales) from CAD 21.7 million (17.3%) year-over-year.

Financial highlights

• Combined sales revenue (including NeoPollard JV) reached CAD 177.7 million, up from CAD 151.2 million year-over-year; GAAP sales were CAD 146.2 million, up from CAD 125.7 million.

• Instant ticket average selling price increased, boosting sales by CAD 17.1 million; charitable gaming sales rose by CAD 4.4 million, mainly from acquisitions.

• Adjusted EBITDA increased to CAD 30.6 million from CAD 23.7 million year-over-year.

• Net income was CAD 11.7 million, up from CAD 6.9 million; EPS was CAD 0.43 (basic/diluted) versus CAD 0.26/0.25 last year.

• Interest expense increased to CAD 2.8 million due to higher average long-term debt.

Outlook and guidance

• Gross margins are expected to return to the low 20% range by end of 2025 as Kansas iLottery startup costs subside and digital business grows.

• Demand for gaming products remains strong, with instant ticket volumes for 2025 expected to match 2024 and a focus on margin over volume.

• iLottery interest is increasing, with more states exploring solutions, though the sales cycle remains long.

• Ongoing investments in digital platforms, game content, and production efficiencies planned.

• Business structure expected to mitigate impacts from protectionist trade measures and tariffs.