TSX:PBL - Post Discussion
Post by
FormerHedgie on May 09, 2024 10:44am
Record Q1/24, Reiterate $56 potential share price + upside
Reiterate FTM Potential Price of $58 with the potential for upside
Another great quarter from Pollard. The highlights include:
Quarterly records
-Record Q1 Combined Revenue $151.2M, up 5.4%
-Record Q1 EBITDA $23.7M, up 27%
-iLottery Operating Income $14.9M, up 34.6%
Other Guidance / Updates
-Strong printed ticket volumes/prices to occur in Q2 and Q3
-Almost all printed ticket contracts have negotiated price increases that will positively impact revenue / margins for all of 2024 and 2025
-Small input cost reductions that will help margin growth
-New lottery jurisdictions to add iLottery offerings in coming quarters
-Production volumes slightly down in Q1 despite record results, guided to strong volumes in Q2/Q3
Items From Q1 SEDAR Financial statements
Net debt is down to $77M
(Long Term Debt 111.2M - Current Cash 6.6M / Restricted Cash 27.9M)
Operating Cash Flow $25.4M (Pollard could be debt free by the end of 2024)
Items From Q1 MD&A "Outlook"
"The market continues to demonstrate strong underlying consumer demand for a variety of instant-win scratch ticket products."
"While our overall volume of instant tickets for 2024 is expected to be similar to 2023, we anticipate higher volumes in the second and third quarters of 2024 relative to the first quarter of 2024"
"The results of our repricing strategy continue to be reflected in both our instant ticket revenues and gross margins. Quarterly results will vary based on mix and timing; however, with the majority of our work repriced we will continue to see the growing positive impact on our selling prices throughout 2024 as the new pricing terms take effect."
"Our iLottery results reached record levels in the first quarter, and the long-term expectation is for continued growth in existing and greenfield jurisdictions in North America and internationally."
"Future acquisitions remain a focus and we continue to review a number of strategic opportunities."
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