Breaks $50-billion income barrier with 32% jump in year-end profit

Durrant Pate/Contributor

Jamaica-based regional gaming giant, Supreme Ventures Limited (SVL) enjoyed another good yearly performance in 2022 with income breaking the J$50-billion barrier.

Total gaming income closed the year, up 16 per cent to J$50.77 billion, an improvement over the J$43.92 billion in 2021. For the December quarter, income went up nine per cent to J$13.25 billion (2021: J$12.21 billion).

Revenues from the company’s segments for the year were as follows:

• Revenue from non-fixed odd wagering games, horse racing and pin codes increased 12 per cent to J$29.47 billion (2021: J$26.39 billion).
• Income from fixed odd wagering games, net of prizes increased 22 per cent to J$21.30 billion (2021: J$17.53 billion).

Interest revenue for the year amounted to J$93.62 million (2021: J$56.28 million). For the quarter, it amounted to J$70.09 million (2021: nil).

Expenses going up

Direct expenses for the period went up 14 per cent to J$39.60 billion (2021: J$34.59 billion), while for the fourth quarter, direct expenses inched up two per cent to J$9.64 billion (2021: J$9.42 billion). Selling, general and administrative expenses for the year increased to J$6.98 billion (2021: J$6.16 billion), a 15 per cent increase. For the December quarter, these expenses rose 23 per cent to J$2.07 billion (2021: J$1.68 billion).

Gross profit for 2022 increased 20 per cent to J$11.27 billion (2021: J$9.38 billion). For the quarter, gross profit increased 29 per cent to J$3.68 billion (2021: J$2.84 billion).

Other income for the year increased eight per cent to J$239.3 million (2021: J$221.78 million), while for the final quarter, there was a 45 per cent improvement to J$173.02 million (2021: J$119.52 million). Total comprehensive income for the year increased 28 per cent to J$3.04 billion (2021: J$2.37 billion) and for the December the quarter, it increased 29 per cent to J$1.07 billion (2021: J$832.47 million).

Profitability improving

Operating profit for 2022 rose 32 per cent to J$4.38 billion (2021: J$3.33 billion) and for the last quarter, operating profit increased 41 per cent to J$1.64 million (2021: J$1.16 million). Finance costs closed the year at J$535.2 million (2021: J$30.40 million) and for the December quarter, a massive rise of 446 per cent was experienced to close the year at J$301.22 million (2021: J$55.22 million).

Profit before taxation increased 18 per cent to $J3.86 billion (2021: J$3.28 billion) while profit before tax for the December quarter, climbed 14 per cent to J$1.21 billion (2021: J$1.06 billion). Taxation for the year went down 18 per cent to J$781.34 million (2021: J$951.38 million).

Taxation for the last quarter fell 32 per cent to J$188.21 million (2021: J$278.07 million). As such, net profit for the year increased 32 per cent to J$3.08 billion (2021: J$2.33 billion).

For the final quarter, it increased 30 per cent to J$1.02 billion (2021: J$785.07 million). Net profit attributable to shareholders for the year increased 33 per cent to J$3.04 billion (2021: J$2.29 billion) while for the final quarter, it increased 30 per cent to J$998.5 million (2021: J$770.44 million).

Earnings per share totalled J$1.15 (2021: J$0.87), while for the quarter, it amounted to J$0.38 (2021: J$0.29). Notably, SVL’s stock price closed the trading period on Tuesday March 28, 2022, at a price of J$25.86 with a corresponding P/E ratio of 22.43 times.

Balance Sheet at a glance:

As at December 31, 2022, SVL had assets totalling J$18.37 billion (2021: J$17.23 billion). The increase was due mainly to an increase in ‘Property, Plant and Equipment’ and ‘Trades and Other Receivables’, which closed at J$4.86 billion (2021: J$4.20 billion) and J$3.27 billion (2021: J$2.57 billion), respectively.

Shareholders equity attributable to owners of SVL amounted to J$4.69 billion (2021: J$4.23 billion) with a book value per share of J$1.78 (2021: J$1.60).