Q4 2025 Pollard Banknote Ltd Earnings Call Transcript
Key Points
- Pollard Banknote Ltd (PBKOF) successfully launched its iLottery solution with the Kansas Lottery, marking the fastest rollout of a greenfield iLottery operation.
- The company secured a major 12-year technology contract with the Belgian National Lottery, valued at approximately CAD289 million.
- Pollard Banknote Ltd (PBKOF) was awarded a primary supply role for instant tickets with the California Lottery, the largest seller of instant tickets in the United States.
- The acquisition of Pacific Gaming has been seamlessly integrated, expanding Pollard Banknote Ltd (PBKOF)'s Charitable Gaming Group.
- The company's Neo Pollard joint venture saw significant growth due to strong e-instant sales and large draw-based jackpots, particularly in North Carolina and Virginia.
- The Kansas iLottery operation is currently experiencing losses as expected in its start-up phase, impacting overall profitability.
- Regulatory changes in Minnesota have led to a reduction in margins for Pollard Banknote Ltd (PBKOF)'s charitable e-gaming segment.
- The company's gross profit percentage decreased in the fourth quarter of 2025 compared to the previous year, partly due to increased costs associated with iLottery operations.
- Administration expenses increased significantly due to higher compensation costs, ERP implementation, and software licensing expenses.
- The Michigan iLottery contract is set to expire on July 1, 2026, which could impact future revenue streams.
Good morning, everyone. Welcome to the Pollard Banknote limited fourth quarter and full-year 2025 results conference call. Listeners are reminded that certain matters discussed in today's conference call or answers that may be given to questions asked could constitute forward-looking statements that are subject to risks and uncertainties related to followed future financial or business performance. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements.
The risk factors that may affect the results are detailed in Pollard annual information form and other periodic filings and registration statements, and you can access these documents at SEDAR+ database found at sedarplus.ca. I'd like to remind everyone that this conference call is being recorded today, Wednesday, March 11, 2026. And I would like to introduce Mr. Doug Pollard, Co-Chief Executive Officer of Pollard Banknote Limited. Please go ahead, sir.
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