Canada's Pollard Banknote Q4 revenue rises, adjusted EBITDA misses estimates

Overview

• Canada lottery supplier's Q4 revenue rose 7.5% yr/yr; adjusted EBITDA missed analyst expectations

• Net income swung to profit from loss in prior-year quarter

• Revenue growth driven by higher instant ticket prices, acquisitions, and increased ancillary lottery sales

Outlook

• Pollard Banknote expects initiatives in iLottery and eTab to offset margin pressures in 2026

• Company expects no material impact from protectionist trade measures but will continue monitoring

Result Drivers

• INSTANT TICKET PRICING - Higher average selling prices for instant tickets increased revenue, though partially offset by lower sales volumes

• ACQUISITIONS - Acquisition of Pacific boosted charitable gaming volumes and sales

Company press release: ID:nCNWK90H2a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

• Wall Street's median 12-month price target for Pollard Banknote Ltd is C$33.00, about 76.5% above its March 9 closing price of C$18.70

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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