The Supreme Ventures Group Reporting JA$624M In Profits, A 44% Increase For June 2019 Quarter
The Supreme Ventures Group is reporting a significant improvement on the June 2019 quarter, reporting JA$624.28 million in profits, a 44% increase or $191.86 million over the corresponding prior quarter of 2018 and 19% for the six-month period versus prior period.
The company’s just released unaudited financial statements for the six months ending June 30, 2019 reveal total gaming income recording a 15.6% increase of $1.3 billion when compared to the corresponding period in 2018.
Direct expenses amounted to $7.3 billion, which was $834.64 million, or 12.8%, higher than prior year same period. Direct expenses exclude prizes paid for fixed odds wagering games as these are included in gaining income.
Total gross ticket sales for the quarter amounted to $16.97 billion, representing an increase of 8% over the corresponding period in 2018.
Gross profit for the quarter amounted to $1.97 billion, a 27.1% or $421.32 million increase over quarter ending June 2018, which is attributed to the higher net sales for Cash Pot, Pick 4, Money Time, Super Lotto, PIN codes, horseracing and sports betting.
Commenting on the results Group President and CEO, Ann-Dawn Young Sang indicated that the Group’s performance for the period was attributed mainly to the continued focus on its strategic priorities, which include:
1. Revenue Growth — All segments recorded positive growth for the quarter resulting in a 15% increase over prior period. Lotteries, PINs, Sports Betting and Horseracing recorded double digit increases whereas VLTs showed a marginal decline when compared to Q2, 2018.
2. Optimizing Cost Efficiencies — The increase in the Group’s operating expenses of $106 million can be attributed to the activities associated with the launch of Mobile Gaming in March 2019. This expenditure is expected to have a positive return over time in the form of sales from new segments on the platform.
The Group assets at the end of the quarter amounted to $7.78 billion, representing an increase of $1.2 billion or 17.7% when compared to the position as at December 3 1, 2018.
The major additions are due to the deposit on the acquisition of Post to Post Betting Limited and the trade and other receivables. The trade and other receivables are particularly due to invoices generated for the end of June paid in the first week of July.
5.5% reduction in cash and cash equivalents were as a result of the 2nd quarter of estimated taxes and settlement of Post to Post acquisition.
Revenues from the lottery games portfolio has continued its strong growth trend from the previous year. Stimulated by the successful deployment of marketing and retail initiatives, Cash Pot, Money Time and Pick 4 games in particular, continues to increase in popularity and sales.
The Lotto and Super Lotto games are showing steady improvement on sales based on the high jackpot level now occurring.
Sports Betting has continued to show steady growth for the current period, benefitting from the execution of key initiatives and product offerings. These initiatives contributed to a favourable increase of 25% in revenues when compared to 2018.
The Horseracing segment recorded its highest revenue performance in this quarter since inception. Management is focused on consistent delivery of an entertainment package to maintain the momentum achieved, despite the legacy challenges being faced. The segment incurred a loss for the quarter, particularly resulting from increased expenditure on repairs and maintenance.
The Mobile gaming channel launched at the end of March 2019 featuring two main Lottery products, Cash Pot and Money Time.
Marketing activities are primarily aimed at driving awareness and registration for the product, however the challenges presented by the regulatory requirement has impacted the verification process as expected.
The company is focused on addressing those challenges and further refining the process.
Marketing tactics, and supplemental advertising are being utilized as well as a focus on widening the network of top up locations and options to improve convenience and drive sales, The Mobile App is expected to have well over a thousand registered players by mid-2019.
The Guyana operation’s product suite is currently being built out, and the business is expected to show positive returns by the end of 2019. The current focus is investing in the right product set in Guyana, with effective retail distribution which they can build on.
The Group is looking forward to the second half of the year as they maintain the positive momentum created in the first half through initiatives such as:
>The acquisition of Post to Post Betting,
>The continuation of improvement of the Justbet product through execution of various initiatives,
>Driving various promotions and initiatives through retail channels,
>The continued drive to grow mobile channels through increased registration across gaming segments,
>The preparation to enter the online gaming landscape,
>Continued build out of the business in Guyana
>and the improvement to the horseracing product through technological and new product initiatives.
The Groups Lottery portfolio continues to be a primary focus and improving and strengthening internal infrastructure and capabilities.
Supreme Ventures Limited closed the six (6) months ended June 30, 2019 with earnings per share of 23.67 cents up from the 16.40 cents recorded for 2018.