However, quarterly profit dipped by J$18 million or 4%  

Durrant Pate/ Contributor

Regional gaming group, Supreme Ventures Limited (SVL) continues its profitable run posting net profit of J$408 million for the third quarter, ended September 30, 2023. 

However, this profitability represents a small decline of J$18 million or 4% compared to the same period in 2022. The lower profits were due primarily to increases in selling, general and admin expenses of J$364 million and finance costs of J$158 million. 

SVL’s investments in Main Event Entertainment Group and Dolla Financial Services continue to bear positive fruit to the tune of J$113.5 million for the review quarter and J$333.2 million for the nine months ended September 2023. 

Small acceleration in gross revenues

Gross revenues closed Q3 on J$12.8 billion, an increase of J$755 million or 6% over same period last year, facilitated by the introduction of world class and exciting new promotions such as the Supreme Haval, Monsta Ball, Money Time and Supa-Train. SVL reports that its money train promotion was well received, which also contributed to the improved gross sales for the quarter.

Direct group costs amounted to J$10.2 billion, an increase of J$424 million or 4% over Q3 of 2022 and in line with the increased gross revenues of 6% over the third quarter of 2022. SVL says customer winnings have exceeded expectations for the quarter, due to a higher-than-average prize liability ratio, which was the main driver for the increased direct costs. 

Total costs for the third quarter include contributions to government agencies and related bodies of over J$2.38 billion. SVL continues to be one of the largest contributors to the government coffers at multiple times its profitability. 

The earnings per share of 14.99 cents for Q3, enabled SVL to propose interim dividends to external shareholders of 9.36 cents for the nine months ended September 30, 2023. Total assets ended the quarter at J$20.59 billion.

Positive cash flows

SVL generated positive cash flows from operations of J$682 million to close the quarter with a balance of J$3.05 billion, an increase of J$83 million compared to 2022. SVL met all requirements and covenants under the terms of agreement with bondholders and other credit facilities during the quarter.

Total operating segments year to date recorded results of J$2.89 billion, an increase of J$227 million or 9% compared with 2022, largely led by solid performance of the lottery segment. Customers continue to achieve record winnings, as SVL focuses on increasing customer engagement across the base. 

Selling general and administrative expenses (including depreciation and amortization) for the 9 months ended September 2023 amounted to J$1.08 billion above the same period in 2022. The main drivers were staffing costs, foreign travel, marketing & business development, professional services, bad debt expenses and subscriptions & donations. 

Much of this expenditure was directly linked to the company’s expansion into other territories and automation projects being implemented to drive the digitization of the Group. SVL has prudently increased its bad debt provision to safeguard against an increase in trade accounts receivable.

However collection efforts remain a focus of the group and recoveries are expected, as the measures implemented continue to make an impact.