Pollard Banknote Ltd
TSX:PBL
Pollard Banknote Ltd
Pollard Banknote Ltd. engages in the provision of lottery and charitable gaming products and services. The company is headquartered in Winnipeg, Manitoba and currently employs 2,064 full-time employees. The company went IPO on 2005-08-05. The firm operates through two segments: Lotteries and charitable gaming, and Diamond Game. The Lotteries and charitable gaming segment is engaged in the manufacture of instant tickets and related products. The Diamond Game segment is engaged in the development of game systems. Pollard produces and provides a range of instant tickets and lottery services, including licensed products, distribution, SureTrack lottery management system, iLottery, digital gaming, PlayOn loyalty programs, retail management services, ScanACTIV, lottery ticket dispensers and play stations and vending machines, including charitable game systems marketed under the Diamond Game and Compliant Gaming trade names. In addition, Pollard’s charitable gaming product line includes pull-tab tickets, bingo paper, pull-tab vending machines and ancillary products such as pull-tab counting machines.
Pollard Banknote Ltd. engages in the provision of lottery and charitable gaming products and services. The company is headquartered in Winnipeg, Manitoba and currently employs 2,064 full-time employees. The company went IPO on 2005-08-05. The firm operates through two segments: Lotteries and charitable gaming, and Diamond Game. The Lotteries and charitable gaming segment is engaged in the manufacture of instant tickets and related products. The Diamond Game segment is engaged in the development of game systems. Pollard produces and provides a range of instant tickets and lottery services, including licensed products, distribution, SureTrack lottery management system, iLottery, digital gaming, PlayOn loyalty programs, retail management services, ScanACTIV, lottery ticket dispensers and play stations and vending machines, including charitable game systems marketed under the Diamond Game and Compliant Gaming trade names. In addition, Pollard’s charitable gaming product line includes pull-tab tickets, bingo paper, pull-tab vending machines and ancillary products such as pull-tab counting machines.
Record Sales: Pollard Banknote reported new quarterly records for both traditional sales ($156.3 million) and combined sales ($187.3 million), though growth was modest versus last year.
Major Contract Wins: The company secured transformative long-term contracts with the Belgium National Lottery (12 years, CAD 289 million) and became the primary instant ticket supplier for the California Lottery (up to 12-year term, CAD 375 million).
Margins Under Pressure: Gross profit and EBITDA margins declined year-over-year, mainly due to Kansas iLottery start-up costs and lower eTab margins in Minnesota.
Margin Outlook: Management expects gross margin improvement in 2026 as Kansas iLottery losses decrease, eTab content adapts to regulatory changes, and new California volumes ramp up.
ERP Costs: Elevated administration expenses due to new ERP system implementation will continue into 2026 but are expected to taper off toward late 2026/early 2027.
Strong NeoPollard JV: Income from the NeoPollard Interactive joint venture increased, driven by strong iLottery performance in North Carolina and Virginia.
Optimistic Outlook: Management is confident about continued growth in instant tickets and iLottery, with no evidence that online sales are cannibalizing retail.
Analyst Q&A: Management addressed headwinds to profitability, the significance of recent contract wins, market dynamics, and confirmed steady improvement in Kansas iLottery performance.
