Net profit grows to J$426 million for traditionally slow September quarter

Durrant Pate/ Contributor

While the September quarter is traditionally a challenging period for regional gaming company Supreme Ventures Limited (SVL), the business has shown its versatility and sustainability in posting strong financials for the quarter.

During the period, the Jamaica-based gaming operator posted a net profit of J$426 million, which represents an increase of J$113.7 million or 36.4 per cent when compared to the same period in 2021. This despite the effects of major sporting competitions being on their annual break, plus prioritised expenditures on back-to-school commitments, thereby posing challenges regarding sales.

Additionally, the fallout of the current harsh economic climate and the overseas conflict continue to affect the spending ability of customers but SVL managed to overcome these challenges to post healthy financial results for the quarter. Total gross ticket sales amounted to J$26.6 billion, an increase of 26 per cent over the corresponding period in 2021, as customers continue to support new initiatives that positively impact their pockets during stringent economic times.

Gaming income rose by J$1.9 billion

Total gaming income rose to J$12.1 billion, representing an increase of $1.9 billion or 18.7 per cent, when compared to the prior period in 2021. This was driven largely by lottery sales with strong performances from Cash Pot and Instants.

Direct expenses amounted to J$9.8 billion, which is J$1.8 billion or 22 per cent higher than the same period prior year.

“This continues to demonstrate our commitment to higher pay-out amounts to our key partners and regulators during the quarter, as prize pay-outs trended higher for some games compared to corresponding to same period last year,” explained Executive Chairman Gary Peart in his quarterly report to shareholders.

The Group continues to plough back more than 97 per cent of its earnings into the Jamaican economy via prizes, fees, taxes and operational payments. Gross profit for the quarter amounted to J$2.31 billion, representing an increase of J$142.1 million or seven per cent when compared to the second quarter of 2021.

This is as a direct result of the higher revenue amounts recorded during the quarter. Earnings per share for the quarter is 15.84 cents (2021: 11.80 cents). The dividend approved is 14.54 cents per share.

Business segments performance

The respective business segments contributed an uplift of J$5.8 billion or 18.3 per cent to achieve gaming income of J$37.5 billion year to date ending September 30, 2022. The Lotteries segment reported gaming income of J$17.4 billion and achieved results of J$2.7 billion.

This represents an increase of J$3.0 billion or 20.9 per cent on gaming income while the segment results showed an increase of J$453.0 million or 19.9 per cent. The Sports Betting segment reported increased results of J$745.6 million or 146 per cent when compared to last year.

Gaming income of J$9.3 billion, represented an increase of J$809.2 million or 9.6 per cent, when compared to the prior year’s gaming income. This improved performance was expected somewhat with the resumption of the major sporting football leagues like the English Premier League and Champions League.

Continued improvement is expected in all product lines as the World Cup qualifiers are in full gear and the tournament itself taking place in November-December this year. PIN codes sales saw an increase of J$639.4 million or 7.5 per cent over the corresponding period of 2021, achieving segment results of J$205.9 million, an increase of J$66.9 million or 48.2 per cent.

SVL’s partnerships with its main distributors continue to bear rich dividends and this momentum will continue as the gaming company focusses on ensuring maximum convenience for the end consumers.

The company continues to push the envelope in the enhancement of greenfield retailers, all in the effort to beef up its network of ‘ChargeUp’ terminals.