Pollard Banknote Limited unveiled more regarding its second quarter of the fiscal year. The lottery leader of Canada unveiled everything surrounding the three months that came to an end on June 30 and the benefits they brought to its operation in the long run. Net income witnessed a significant surge over that period of time, as more Canadians purchased lottery tickets.
The lockdown that has been in progress for more than five months now has taken its toll on the gaming field of Canada. Every province had to close its land-based casinos and gambling halls mid-March, in order to protect both casino patrons and casino staff members. In the meantime, online gaming and lottery ticket offerings remained the sole legal ways for gambling.
Q2 Revenue
Pollard Banknote has a close relationship with all five Crown corporations overseeing the gaming field of Canada. Each of them supports the provincial gaming fields and makes it possible for people to witness more diverse gaming offerings on a daily basis. John Pollard, Co-Chief Executive Officer, made it clear that the second quarter of this year has been a positive one for the lottery products leader.
Revenue generated during this period amounted to some CA$91.5 million, as people were interested in purchasing lottery tickets both in-person and online. The latter approach was considered a safer one and lottery corporations across Canada worked on their online gaming platform in order to make online lottery ticket purchases a more optimized process.
In the beginning stages of the lockdown up until April 15, the lottery market witnessed a nearly 20-percent slump in retail sales. It should be taken into account that the second quarter of this fiscal year also saw a drop in some areas. The Diamond Game revenue generated impacted the overall revenue of Pollard Banknote. Moreover, charitable gaming revenue drop was also inevitable, as physical distancing was also important for the lottery leader.
More Info
The first days of May brought more dynamics across the Canadian gaming field and retail sales surpassing the expectations. They marked a nearly 25-percent increase when compared to the second quarter of the previous fiscal year. Mr. Pollard also shed more light on other details surrounding Q2 of the fiscal 2020/2021. He pointed out that pre-tax income amounted to CA$12.4 million.
This performance was a positive one for the lottery leader of Canada during these trying times on a global scale. In addition to that, the Adjusted EBITDA also managed to reach a record amount of CA$19.8 million and there is a good reason for that. Pollard Banknote succeeded in qualifying for the Canada Emergency Wage Subsidy, a feat that substantially helped its further operation.
The lottery leader became eligible for a slice amounting to CA$5.8 million or two months at the start of Q2 of this fiscal year. When it comes to the total revenue generated by Pollard Banknote across North America, it managed to reach $7.6 million over Q2. This amounted to some 32 percent of everything achieved during Q2 of the previous fiscal year. Projections are that Q3 will be a more positive one.
