Despite a falloff in net profit for Supreme Ventures Group (SVG) last year, chairman Gary Peart said the company remains resilient and continues to thrive.

The company saw its net profits decline by 21 per cent, falling from J$3.08 billion in 2022 to J$2.44 billion last year.

“After realising record profits in 2022, Supreme Ventures had yet another year of strong results. While we may not have delivered profits as high as the previous year, in this time of economic transition our numbers are enviable, reflecting a strong profitable and thriving company,” Peart reported to shareholders at the SVG annual general meeting (AGM) held today (May 30) at the AC Marriott Hotel in New Kingston.

“During the first quarters of 2023, our performance was on track to surpass the previous year. However, by year-end we experienced a 20 per cent reduction in net profit compared to 2022,” he added.

This, Peart said, was due to lower revenues from lottery ticket sales, the core of the group’s revenue-generating activities. Sales from the lottery segment accounted for 64 per cent of revenue.

Still, year-over-year gross ticket sales declined by three per cent, down from $109.6b in 2022 to $105.5b in 2023, driven mainly by lower lottery ticket sales.

Notwithstanding, the chairman found a silver lining with increased earnings from sports betting, which was the fastest-growing market segment in terms of revenues.

“In 2023 revenue from betting grew to approximately $15b, an increase of almost three per cent year-over-year,” Peart said during the AGM.

In SVG’s annual report for 2023, the management discussion and analysis outlined that strategic initiatives were to be credited for the improvement in the sports betting segment. The group said it captured “a higher market share among younger millennials” even as “the mobile platform user base increased exponentially during the year”.

Though revenues from phone credit sales remained flat, Peart celebrated the fact that the group is the “largest distributor of phone credit at the right price in Jamaica”.

For 2023, SVG’s gross profit increased marginally. At the same time, its selling, general and administrative expenses grew by 17. 3 per cent due to higher staff costs and marketing and business development expenses.

Operating profit of $3.88 billion was 11.6 per cent lower than the $4.39 billion reported in 2022.

Net profit attributable to shareholders for 2023 totalled $2.42 billion compared to $3.04 billion a year prior. Earnings per stock as a result declined from $1.15 to $0.91.

Looking ahead SVG is bullish that its bill payments, remittances and microfinance segments will drive revenues in the current financial year. Moreover, Peart says the group continues to build on it pillars of growth: continuous innovation, global expansion, and shareholder value.