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Pollard Banknote Provides Business Update in Response to COVID-19 Uncertainty

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Pollard Banknote Limited, like many organizations, has been confronted with an unprecedented challenge in managing the impact of the COVID -19 virus outbreak.

Our focus in all of our operations is maintaining a safe and healthy environment for all of our employees, their families and all of our stakeholders, while continuing to support the business of our customers. We have implemented stringent health protocols in all of our facilities including extensive social distancing protocols, more frequent cleaning and disinfecting, widespread working at home policies and daily health and temperature screening for all staff working at all of our facilities.

Pollard’s business is primarily focused on the sale of instant tickets and ancillary products to government lotteries around the world and the sale of charitable gaming products to charitable gaming organizations in North America. Our products are sold to lotteries and distributors for ultimate sale at various retail establishments.

Lotteries

Pollard’s lottery operations account for approximately 78% of our overall revenue. Currently almost all lotteries have remained operational and are continuing to sell lottery products including instant tickets at retail. The impact of the virus on retail sales of lottery products has varied from jurisdiction to jurisdiction, however on average, over the last few weeks North American lotteries are reporting between 15-20% reductions in retail sales of instant tickets compared to the same periods last year.

All of our lottery production facilities remain open and operational at this time, and all of our staff who can work from home are doing so. Our supply chains remain intact. We have not yet seen a significant reduction in our short-term production schedule as generally we produce instant tickets well in advance of its release at retail by the lotteries. However, to ensure a safe work environment, including maintaining social distancing, we have reduced our staffing and production capacity in our Ypsilanti, Michigan facility. The combined impact of this reduction in capacity and some softening in our orders due to lower retail sales could result in a reduction in our instant ticket revenue of between 10-15% during this period.

Traditionally, sales of instant tickets have shown significant resilience during times of substantial economic downturn and we anticipate a return to the historic sales levels and continued growth when retail markets return to normal.

Our sales earned through our iLottery operations, generated through revenue sharing, has grown noticeably over the past few weeks, as consumers increasingly move their purchases to the internet. However, only a small number of lotteries have developed iLottery portals and as a result, our increased revenue from iLottery will only modestly mitigate reduced sales in other areas of our business.

Pollard has taken a number of steps to minimize our expenditures throughout our lottery business in light of the reduced lottery revenue. This includes reductions in discretionary expenses, postponing capital projects, select temporary staff furloughs in certain areas of the lottery operations and salary reductions for our entire management group. Government programs available to assist employees and businesses are being investigated and reviewed. In addition, our ancillary products operations, including Schafer and Fastrak merchandising operations, are selectively utilizing temporary staff furloughs to help mitigate any reduction in revenue for these businesses. To the extent the economic environment further reduces lottery sales, additional expenditure reduction initiatives will be implemented.

Charitable Gaming

Our charitable gaming products generate approximately 22% of our consolidated revenue and include the sale of pull-tab tickets, bingo paper and the operation of Diamond Game and Oasis branded egaming machines. Sales primarily occur in social settings such as bars, veteran halls and bingo centers across North America. Essentially all jurisdictions have temporarily closed these facilities and as a result, our charitable gaming and egaming revenue has been mostly eliminated. This revenue reduction is expected to continue during the period these outlets are closed. There is no clear indication when jurisdictions may reopen these establishments or when we can expect retail sales of charitable gaming products to return to their pre-existing levels.

Our American Games and International Gamco business units remain operational at this time and continue to produce inventory to help address a significant backlog of orders that had developed due to strong customer demand prior to the closure of the various social settings. This replenishment of our pull-tab and bingo paper inventory levels will allow us to be strongly positioned to meet our customer demand when the retail locations are allowed to reopen.

Pollard is also taking steps across our charitable gaming businesses to minimize our losses during this period. Discretionary expenses have been eliminated and capital expenditure projects postponed. In addition, temporary staff furloughs, workshare programs among employees and salary reductions across management have been implemented throughout our operations. We do not make these decisions lightly and in all cases we are working closely with employees and governments to take advantage of various programs that provide financial support for our staff in these difficult times.

The situation we are all facing is unprecedented and has been changing very quickly. Based on the current impact of the virus on our business, we would estimate that our overall consolidated revenue could be reduced in the 25-30% range compared to the prior year during this period of decreased sales. We have implemented cost reduction strategies to minimize the impact of the revenue reduction, which will evolve as the situation changes.

Pollard has significant financial strength and a number of sources of liquidity to allow us to weather this period of reduced sales. In addition to our expenditure reduction initiatives, our balance sheet is strong with substantial available cash resources and access to additional funding through an undrawn secured senior bank facility that provides considerable readily available liquidity including a large accordion feature. Our working capital levels going into this period were high, providing further liquidity as we collect our receivables. The Pollard family, 67.5% shareholders, remain very committed to our business through their leadership and continued financial backing.

“The situation relating to the COVID-19 virus is changing very rapidly and will undoubtedly continue to do so,” commented Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “However, the long-term business fundamentals of the lottery and charitable gaming industries remain extremely positive. Our organization is very strong and will be able to withstand this difficult period. When markets start to open up again we expect our products to bounce back very quickly.”

“Having been established over 110 years ago in 1907, Pollard clearly focuses on taking the long-term view through our vision and commitment to our stakeholders. The Pollard family and all of our more than 1,900 dedicated team members remain committed to growing our world class organization and being the partner of choice to our lottery and charitable gaming customers, now and in the future.”

 

SOURCE Pollard Banknote Limited

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Flexion Reports Revenue Increase of 9% for 2024

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Flexion, the games marketing company, has announced that its revenue grew 9% to year-end December 2024. The growth is attributed to the Company’s success in the alternative app store market.

Since its IPO in 2018, the company has built a well-positioned games marketing business around the alternative stores and grown annual revenue 50-fold to almost US$100 million. Its game portfolio represents several billion US$ in gaming IP for alternative market partners like Samsung, Amazon, Huawei, OneStore and Xiaomi.

“With the Digital Markets Act (DMA) coming into force in Europe and recent legal actions in the US, mobile game developers have felt a new-found freedom to explore their market options. We’ve already moved beyond the era when Google and Apple controlled everything. Developers are looking for alternatives that offer better margins, and additional audiences and revenue. Partnering with Flexion opens up a range of market channels with very little up-front investment,” said Jens Lauritzson, CEO of Flexion.

Flexion currently distributes more than 30 high-profile titles on the alternative stores. Top-tier games in the Flexion portfolio make on average US$ 10 million a year based on Q4 2024 run rate. That’s income in addition to their Google and Apple revenue with a business model that adds little to their costs.

In Q4 2024, Flexion-serviced games were, on average, generating 9.3% through the alternative stores of the revenue they made on Google Play. This is a significant boost for Flexion’s partners without major costs or effort.

“If you scale for the size of the stores, the alternatives massively out-performed Google in Q4 for our games. This is exciting both for Flexion’s business and for the future of the games industry as a whole. We’re seeing the beginning of a sea change in games marketing,” Jens said.

“We’re seeing just the beginnings of a major shift in how top-tier developers address their markets. Using Flexion to access alternative stores is an easy first step into the post- Google and Apple world. Many developers are already looking at their options beyond that and Flexion will be right there with them providing the technology and expertise they need to maximise the potential of their games,” Jens added.

The post Flexion Reports Revenue Increase of 9% for 2024 appeared first on European Gaming Industry News.

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Players Reclaim Close to $7M Through AskGamblers Complaint Service in 2024

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The latest AskGamblers Complaint Service report for 2024 has officially been released. The comprehensive report highlights the most important accomplishments and records of the AskGamblers Complaint Service team for the previous year.

In 2024, The AGCS team (formerly known as AGCCS) managed to return $6,890,547.11 to players. Over 7259 players turn to AskGamblers, submitting complaints against 1114 casino brands. Out of all the accepted and processed complaints, the team had a 68% resolution success rate. One of the notable milestones that reached was returning a total of $70 million to the members.

Dijana Radunović, General Manager at AskGamblers, said: “It’s amazing to see the trust players put in us year after year, and we’re able to repay them by helping them recover their funds from operators or solve other related issues. We’ve had another successful year, with a few records broken and amazing milestones achieved and we can’t wait to see what lies in store in the years ahead.”

The post Players Reclaim Close to $7M Through AskGamblers Complaint Service in 2024 appeared first on European Gaming Industry News.

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SlotsCalendar Announces its Second Awards Edition at iGC Malaga 2025

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SlotsCalendar, a leading name and tastemaker in iGaming, has announced the second edition of the SlotsCalendar Awards. Winners will be announced during the iGC Malaga event in May 2025.

These awards are rapidly gaining significance in the iGaming world as SlotsCalendar’s steady growth, success, and player-centric mentality represent the community’s interest.

Players have approximately a month to vote between the 10th of April and the 12th of May.

For its 2025 edition, the SlotsCalendar Awards Gala returns to the iGaming Club Conference in Malaga, happening on May 28th. The Awards categories for this year are as follows:

• Game Studio of the Year

• The Slot Everyone’s Talking About

• Star Slot in the Making

• Casino of the Year

• Excellence in Bonus Variety

• Industry Standard in Responsible Gambling

• Live Casino of the Year

• Best Sports Betting Platform

• Best New Casino

• Best Crypto Casino

While the idea of iGaming Awards is not new to the industry, the SlotsCalendar Awards are unique for a simple reason: winners are voted by players from the entire iGaming community.

The uniqueness of these awards makes them particularly important in iGaming. Placing the decision-making strictly in the hands of the player is a fundamental shift in the iGaming community.

SlotsCalendar CEO Viorel Stan said: “It’s truly an honor and a privilege to see how our SlotsCalendar Awards have evolved. Last year’s inaugural edition was a crowning achievement for us. It proved how vast and involved our community is, creating a level of engagement that made us incredibly proud. Being able to return to the iGC and reward some of iGaming’s luminaries in the name of the SlotsCalendar Community is beyond gratifying.”

The post SlotsCalendar Announces its Second Awards Edition at iGC Malaga 2025 appeared first on European Gaming Industry News.

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