Durrant Pate– Jamaica Observer – November 1, 2020
REGIONAL gaming company Supreme Ventures Limited (SVL) is reporting profit of $1.6 billion for the nine-month period ended September 2020, a turnaround of its fortunes after having suffered severe financial haemorrhaging in its second quarter.
The latest company financials show strong recovery from COVID-19’s impact, with 26 per cent increase in quarterly profits. SVL underscored the fact that its performance, similar to other companies both locally and overseas, has been negatively affected by the impact of COVID-19, pointing out that it continues to strengthen and modify aspects of the operations to be agile.
In its just-released third-quarter interim report to shareholders SVL states, “Our group, with its diversified product offerings, has been able to withstand the impact of the risks associated with COVID-19 on the performance while we continue to bolster and adjust aspects of the operations to be agile.”
The gaming company points out that it has rolled out more innovative approaches in how it does business, noting that this will positively impact the way customers interact with games through the new channels.
The improved Q3 performance resulted in profits of $622.8 million, representing an improvement over prior year by $96.3 million. Total gross ticket sales for the quarter amounted to $19.9 billion — an increase of 12.6 per cent over the corresponding period in 2019.
Total gaming income was $10.4 billion, an increase of $409.9 million or 2.5 per cent compared to the corresponding period in 2019. Direct expenses came out at $8.2 billion, which was $613.1 million or 2.7 per cent higher than the prior year. Direct expenses exclude prizes paid for fixed odds wagering games, as these are included in gaming income.
Total prizes paid in the quarter amount to $14.9 billion, an increase of 16.28 per cent compared to Q2, 2019. Additionally, payments to Government agencies and regulatory bodies were 5.2 per cent higher than prior year, ending up at $1.71 billion.
Gross profit for the quarter was $2.2 billion or $354.3 million higher in comparison to the quarter ending September 2019. The increase is attributed to improved performance of the segments as well as the addition of Supreme Route Limited and Post-to-Post Betting Limited to the group results.
The net profit for the nine-month period was $1.6 billion, a decline of $210.8 million or 12 per cent when compared to the same period in 2019. The reduced profitability for this period continues to be as a result of the second-quarter performance which was significantly impacted by COVID-19.
COVID-19 measures such as curfews and social distancing affected revenue for some segments during the quarter, however SVL’s focus during the period was on providing alternative methods to access its products in order to boost revenues.
This has resulted in year-to-date gross ticket sales improving by $2 billion or 3.8 per cent over 2019. SVL has implemented a number of initiatives aimed at optimising cost efficiency. These include a one-time strategic expenditure to support the current business objectives and activities associated with SVL’s planned acquisitions and expenses which support the increased revenues.
In terms of business expansion, the company notes that in addition to the augmentation in sports betting, it is in the final stages of exporting the lottery signal to South Africa, which will increase its earning potential for its lottery products.
SVL told shareholders that the subsidiaries are expected to make a positive contribution to the group’s results, despite the impact of COVID-19 on the operations.
Source: http://www.jamaicaobserver.com/sunday-finance/svl-rebounds-in-q3-from-covid-19-setbacks-gaming-firm-chalks-up-1-6-billion-profit_206649?profile=1754
