Loop News – April 27, 2018
Supreme Ventures Limited increased its first quarter bottom line by nearly 50 per cent, as it posted $618 million in net profit for the three-month period ending March 2018.
With revenues for the quarter increasing by 14 per cent over the prior year to $15.3 billion, SVL President and CEO, Ann-Dawn Young Sang, reported that the group experienced the best performing financial quarter in its history.
Gross profits increased by $491 million, a 40 per cent increase over prior year, attributable mainly to higher sales in Cash Pot, Pick 4, Money Time, Super Lotto, Horse Racing and Sports Betting, the company said.
The Group’s record performance, Young Sang said, was due to continued focus on its strategic priorities, which include revenue growth, optimising cost efficiencies and other gains.
The Sports Betting segment recorded a 59 per cent increase, with revenue from the lottery and PIN codes segments growing by five per cent and two per cent respectively.
While the Horse Racing segment recorded a loss for the quarter, revenues continue to improve due to operational improvements, the company explained.
Young Sang also referred to the improved operational efficiencies across the Group, as well as the sale of the company’s regional office property in May Pen as contributors to the Group’s record results.
Stimulated by the successful deployment of marketing and retail initiatives, the growth trend in SVL’s lottery games portfolio has continued. As a result, Cash Pot, Money Time and Pick 4 games in particular, have increased in both popularity and sales.
Notably, the Sports Betting segment’s revenues have grown significantly for the period, benefitting from the execution of key initiatives and product offerings, which contributed to a 61 per cent increase over the prior year period. While the VLT business incurred a negative return in gross profit, which came through increased play, coupled with improved and increased customer activity, the VLT route experienced significant growth gains and increased profitability in this area.
The Horse Racing segment recorded an increase in revenue. However, the segment incurred a loss for the quarter, attributable mainly to increased expenditure on repairs and maintenance. SVL’s Management is reiterating its focus on the consistent delivery of an improved non-core revenue package to maintain the momentum achieved, despite the legacy challenges being faced.
“The Group will continue to maintain the positive momentum in the first quarter through the implementation of key strategic initiatives for the remainder of the year. The performance of the Horse Racing segment, in particular, is being closely monitored, in order to reverse the losses experienced in the first quarter,” noted Young Sang.
She mentioned that there are several key initiatives being deployed within the year to positively impact the business, chief among them a mobile solution to further enhance the Group’s product offerings and customer experience.
With reference to steps towards regional expansion announced by the Group recently, Young Sang disclosed, “We have made significant strides with the approval of the licence to enter the market in Guyana. The necessary due diligence and evaluation are currently being executed, with the objective for rollout before the end of 2018.”
The SVL Group also announced, through its Corporate Social Responsibility efforts, a Q1 contribution of some $400 million to provide strong national and community support, in the areas of health, education and sport.
“I express thanks to all stakeholders for the commitment and confidence they continue to show in the Supreme Ventures Group. In particular, sincere gratitude to our shareholders, Board of Directors, valued customers, agents, management and staff for their continued support,” Young Sang said.