—Article by Durrant Pate/Contributor

Regional gaming giant Supreme Ventures Limited (SVL) has broken the J$1 billion net profit barrier from the just-ended April 2022 quarter.

Taxation for the quarter rose 60 per cent to close at J$260.52 million when compared to $162.64 million incurred in 2021. As such, net profit for the three months period amounted to $1 billion, representing a 67 per cent increase from the J$601.70 million recorded for the prior corresponding period.

Net profit attributable to shareholders amounted to J$996.73 million (2021: J$592.26 million). Profit before taxation amounted to $1.26 billion, up 65 per cent from J$764.35 million recorded in the previous comparable period in 2021.

The management is hailing the out-turn saying the performance for the quarter is a remarkable and historic achievement for SVL operations despite the looming residual effects of the COVID-19 pandemic. The company has been able to protect and grow its market share and record the highest revenues in the company’s history, notwithstanding the presence of lottery competitors in the market.

Huge uplift in profitability

According to management, “This huge uplift in profitability for the three-month period, is a result of several factors including the hugely successful re-introduction of the popular instant ‘Scratchaz’ game and our successful implementation of significant cost-savings initiatives. The group continues to focus on enhancing channel strategies and terminal expansion, which have been well received by the marketplace.”

SV Games (mobile/online) has seen exponential growth in both usage and growing the number of active online users due to the increased number of games that can be played on the platform, as well as strong promotional and product enhancement activities. In addition, the ‘Supa Sellaz’ programme has provided an additional sales channel for both Supreme Ventures’ customers and third-party retailers and continues to be successful.

SVL announced that, “New products will be launched through the retail channel as we continue to expand this critical component, a big part of the future of the group. As we continue to roll out our channel diversification strategy, our customers will have new options to game at their fingertips.”

Revenues rising

During the just-ended quarter, SVL reported a 19 per cent increase in ‘Total Gaming Revenue’ from $10.71 billion in 2021 to $12.72 billion in 2022. Revenues from the SVL’s segments were as follows:

• Revenue from non-fixed odd wagering games, horse racing and pin codes $7.22 billion (2021: $6.69 billion), an eight per cent increase year-over-year.
• Income from fixed odd wagering games, net of prizes $5.49 billion (2021: $4.02 billion), a 37 per cent increase year-over-year.

Total gross ticket sales for the period under review amounted to J$27.7 billion, representing an increase of 164.0 per cent over the corresponding period in 2021, as customers welcomed new initiatives that positively impacted their pockets during a difficult economic downturn.

Furthermore, the lotteries segment reported gaming income of J$6.0 billion and achieved results of J$1.2 billion.

This represents an increase of $1.4 billion, or 31 per cent, on gaming income while segment results showed an increase of $517.6 million, or 82.2 per cent. The ‘sports betting’ segment reported results of J$287.2 million and gaming income of J$3.5 billion, an increase of $490.0 million, or 16.6 per cent, when compared to the prior year’s gaming income.

The growth is due significantly to the attractiveness of the offers and flexibility and access to game, enhanced by the use of the mobile platforms. PIN codes sales saw an increase of J$115.5 million or 3.9 per cent for the quarter, achieving segment results of J$84.9 million.

Partnerships with main SVL distributors

The management has explained that, “The partnerships with our main distributors will continue as we focus on maximising the touchpoints and convenience for the end consumers. We continue to be excited about the rollout of ‘ChargeUp’ and the extended relationships being offered to our retailers.”

Direct expenses recorded a 13 per cent increase to close the period under review at J$9.84 billion when compared to J$8.69 billion for the same period in 2021. Notwithstanding, gross profit for the quarter grew by 43 per cent to $2.88 billion (2021: J$2.02 billion).

Selling, general and administrative expenses grew by 24 per cent for the quarter to J$1.63 billion while SVL booked other income of J$114.04 million relative to other income of J$55.06 million in the prior comparable period. As at March 31, 2022, SVL’s total assets base amounted to J$18.19 billion relative to J$14.90 billion a year earlier, a 22 per cent increase year-on-year.

The increase was due mainly to increases in ‘Property, plant and equipment’ and ‘Trade and other receivables’ which closed at $4.76 billion (2021: J$3.06 billion) and J$3.58 billion (2021: J$1.88 billion), respectively. Shareholders’ equity amounted to J$4.55 billion (2021: J$4.03 billion), resulting in a book value per share of J$1.72 (2021: J$1.53).