By Durrant Pate/contributor

Supreme Ventures Limited (SVL), the Jamaica-based regional gaming giant, has seen its equity investments paying off in the second quarter ended June 30, 2024, thereby saving a further depression in group profitability.

The group continues to benefit from its investment in equity securities, recognising unrealized fair value gains of $51.45 million and earning $12.75 million in dividends for the quarter under review. These were offset by higher direct costs (prize winnings) and selling and administrative expenses of $386.76 million and $225.2 million respectively, when compared to the second quarter of 2023.

For the quarter, SVL reported net profit of $475.28 million, representing a decline of $530.23 million or 52.73 per cent against Q2 of 2023. Non-fixed odds revenues continue to show strong growth, increasing by $113.29 million over Q2 of 2023. 

Flat gross revenues for the quarter

Gross revenues amounted to $12.76 billion, remaining relatively flat against Q2 of 2023. This was despite prior year including a surplus of $420.68 million for the Super Lotto Jackpot. Gross ticket sales were $28.29 billion (Q2 2023: $30.42 billion) and a payout ratio of 69.90 per cent (Q2 2023: 70.91 per cent) on core product line being Lottery as direct costs closed on $9.45 billion, up 2.38 per cent or $386.76 million year-over-year.

Total costs include contributions to government agencies and related bodies of over $2.71 billion. SVL continues to be one of the largest contributors to the Government coffers at multiple times its profitability. 

The earnings per share was 18.12 cents for the second quarter ending June 30, 2024, with a proposed interim dividends to external shareholders of 14.33 cents for the June 2024 quarter. 

Positive cash flows from operations

SVL generated positive cash flows from operations of $1.23 billion to close the quarter with a cash and cash equivalents balance of $2.26 billion (Q2 2023: 2.09 billion. The regional gaming giant is reporting that it met all requirements and covenants under the terms of agreement with bondholders and other credit facilities during the quarter.

In addition, the company continues to put back an equivalent of 93.00 per cent of our earnings into the Jamaican economy via prizes, fees, taxes, and operational payments. Total assets went up by $794 million to $21.67 billion. 

The operating segments recorded results of $2.05 billion year to date, a decrease of $322.99 million or 13.59 per cent in relation to the comparative period in 2023. The segment results were impacted by the $420.68 million Super lotto jackpot surplus recognized in 2023. 

This resulted in a 3.50 per cent decline in our lottery segment’s performance. The sports betting segment and pin codes segment continues to grow year over year. Customers continue to achieve record winnings as the group’s focus on increasing customer engagement across the base. 

SVL’s continued investment in new games and promotions will result in long-term customer loyalty and positive results in the medium to long term. Innovation remains a key strategic focus for SVL, which introduced the exciting new jackpot feature to the popular Money Time game, giving customers a chance to win a minimum of $100,000 every four minutes. 

The Money Time Jackpot promotion was officially launched on March 3, as innovation extended to the fast growing sports betting segment. SVL’s flagship sports betting brand JustBet unveiled a fresh new look, reflecting the company’s commitment to providing customers with an enhanced betting experience. 

The brand refresh was followed up with the launch of the customer promotion in partnership with Sportsmax offering football fans an opportunity to watch the 2024 UEFA Champions League Finals live at London’s iconic Wembley Stadium. 

Remittance and bill payment operations

SVL, through its fintech subsidiary, entered the remittance and bill payment space, forging a strategic partnership with Ria Money Transfer to roll out Evolve Money Transfer in February 2024 at various Supreme Ventures Locations. The microfinance subsidiary, Mckayla Financial Services, has also continued its upward growth trajectory, as new loans account for 58 of its current loan book from December 2023, through the development of groundbreaking loan solutions and targeting the underserved population.