All business segments performed creditably in 2020 in comparison to 2019

Higher taxation of 19 per cent resulted in gaming company Supreme Ventures Limited’s (SVL) net profit declining by two per cent to end 2020 at $2.42 billion.

Taxation for 2020 climbed to $1.17 billion compared to $988.08 million in 2019, which caused net profit to drop from the $2.47 billion recorded in 2019. For the December quarter, net profit closed at $873.16 million, up from the $711.06 million posted for the comparable period in 2019.

Net profit attributable to shareholders for 2020 amounted to $2.38 billion, down from the $2.44 billion booked in 2019. For the December quarter, net profit attributable to shareholders totaled $836.55 million, up from the $693 million posted in December 2019.

There was a two per cent increase in ‘Total Gaming Revenue’ from $38.52 billion in 2019 to $39.36 billion in 2020, while for the December quarter, ‘Total Gaming Revenue’ closed at $11.42 billion, up from the $10.46 billion posted in 2019. Despite COVID-19 and the resulting closures in the Sports Betting segment, all business segments performed creditably in 2020 in comparison to 2019, thus reflecting increases of 4.51 per cent.

Lotteries and PINs segments continued to deliver results above expectations based on the strategic initiatives implemented during the year earning $4.44 billion, an increase of 26.02 per cent over prior year. Revenues from the company’s segments were as follows:

• Revenue from ‘Non fixed odd wagering games, horse racing and pin codes’ amounted to $22.85 billion (2019: $23.29 billion), a two per cent decrease.
• Income from fixed odd wagering games, net of prizes totaled $16.51 billion (2019: $15.23 billion), an eight per cent rise.

Marginal increase in direct expenses

Direct expenses recorded a marginal decrease to close the year at $30.608 billion when compared to $30.614 billion for 2019. Included in direct costs are contributions to Government agencies and related bodies of over $8.25 billion, a record increase of 5.23 per cent, or $409.86 million over 2019.

SVL says it continues to contribute substantially to the Government coffers at a rate many times more than our profitability. As such, gross profit for the period improved 11 per cent to $8.75 billion (2019: $7.90 billion). For the quarter, gross profit amounted to $2.76 billion (2019: $2.15 billion).

Selling, general and administrative expenses grew 12 per cent for the period to $4.95 billion (2019: $4.44 billion), while recording ‘Other income’ of $126.67 million relative to $174.11 million for the prior period in 2019. Finance costs rose to $269.87 million compared to $145.80 million booked in 2019.

SVL recorded a revaluation loss on investment property of $34.95 million compared to the 2019 gain of $9.45 million. Earnings per share totaled $0.90 versus $0.93 in 2019, while, for the December quarter, earnings per share closed at $0.32 compared with $0.26 for the comparable period in 2019.

As at December 31, 2020, Supreme Ventures Limited had assets totaling $15.56 billion relative to $9.42 billion a year earlier. The increase was due mainly to a 74 per cent and 239 per cent increase in ‘Cash and Cash Equivalents’ and ‘Goodwill’ which closed at $6.26 billion and $3.70 billion, respectively.

Management’s comments on 2020 performance

In their report to shareholders the management reported that, “while the onset of COVID-19 in March 2020 brought on new challenges and opportunities for our Group, the company focused on providing our customers with easier and more access points for our products”.

Supreme Ventures said this focus led to new and innovative approaches to how it serves its customers and has positively impacted each interaction.

The management also reported that the company has become more agile in its ability to meet customer and stakeholder requirements and has improved communications within its retail network. The management noted that, during the year, SVL acquired the assets of Champion Gaming Limited amounting to $1.5 billion and continues to leverage its fixed distribution network by investing in new complimentary businesses and product lines.

“2021 will see the advent of new financial services and related transactional product offerings which will further benefit the retail network and the main operations,” said SVL Executive Chairman Gary Peart.