David Rose – Jamaica Observer – April 23, 2021
Even against the backdrop of COVID-19 and the entry of Izizzi and Luck Play to the gaming market during its first quarter ending March 31, 2021, Supreme Ventures Limited (SVL) saw a 33 per cent increase of gross ticket sales to $23.8 billion in its 20th anniversary year. This while managing to achieve a record total gaming income of $10.7 billion which was six per cent higher than the prior quarter.
SVL’s core non-fixed odd wagering games, horse racing and pin codes segments recorded 17 per cent growth to $6.69 billion compared to its fixed odd wagering games which registered a nine per cent decline to $4.02 billion.
Despite this sharp uptick in business from the revenue standpoint, the company’s gross profit took a 12 per cent hit to $2.02 billion as the group increased payouts for its games during the quarter with its iconic Cash Pot game now rewarding $305 for a $10 bet compared to the $260 at the end of 2020.
Direct costs rose 11 per cent to $8.69 billion during the quarter. Even with this increase in costs, the SVL report noted that there was a 40 per cent increase in prizes paid amounting to $18.3 billion, which they viewed as putting more money back into the hands of the consumer to help drive the overall economy.
The lottery segment reported a 47 per cent decline, its overall result to $629.87 million while sports betting and pin codes contributed $245.82 million and $46.22 million, respectively, to the group’s segment results.
Although SVL included horse racing and video lottery terminals as part of its sports betting segment, Gary Peart, executive chairman of SVL, noted that the company’s horse racing business was on track to record profitability while being driven by mobile platforms. Sports betting achieved a record 50 per cent increase in gaming income to $3 billion.
With selling, general, and administrative costs two per cent higher at $1.32 billion along with lower other income, SVL’s operating profit declined by 29 per cent to $752.71 million. Through positive finance costs and lower taxes, SVL’s consolidated net profit closed the period at $601.7 million with net profit attributable to shareholders down by 20 per cent to $592.26 million. The SVL report noted that this decline in profitability was expected due to the Government’s COVID-19 restrictions, higher lottery liabilities and introduction of competition. Total assets declined by four per cent to $14.9 billion while total liabilities and equity attributable to shareholders closed the period at $9.26 billion and $4.03 billion, respectively.
