Supreme Ventures Limited (SVL) continues to suffer heavy losses from its investment in and acquisition of Caymanas Track Limited (CTL).
Latest figures show losses at over J$500 million and climbing, creating problems for Jamaica’s leading betting and gaming company which took over CTL from the government over two years ago.
SVL acquired CTL from the Jamaican Government in February 2017 and have so far invested some $2.5 billion in the racehorse company. However, the losses since then have been racked up to in excess of over $500 million and counting.
SVL Chairman, Gary Peart told Caribbean Business Report that the losses in 2018 were over $300-million while the losses up to September 2019 were some $200-million. He admitted that the losses will be even more when the final figures for 2019 are tallied.
The full numbers for the 2019 losses should be out by March 1st. The government decided to sell CTL after racking up millions of dollars in losses each year while being unable to adequately fund CTL, development of the racehorse business or finance the capital infrastructure needed to build out the aging track, betting and tote board systems.
Speaking in an interview with Caribbean Business Report at Mayberry’s Monthly Investor’s Briefing on Wednesday, the Peart expressed optimism that the future for SVL and its investments in CTL is very bright. As he sought to justify his optimism, Peart emphasised, “We look forward to a better outturn for 2020.”
SVL President and CEO, Ann-Dawn Young Sang, guest speaker at the investor’s briefing, sought to put a more positive spin to the perennial losses pointing out that “SVL knew that it would take some time before we see any improvements. However, many opportunities are opening up.”
Young Sang was drawn into defending the acquisition as persons attending the forum posed questions about the CTL losses and making a link to the 16 per cent decline in SVL stock price.
Like her Chairman, Young Sang expressed optimism that 2020 would be the turnaround year for CTL while noting that mobile gaming will be a significant focus for SVL in the coming years.
In addition, SVL plans to leverage its transactions processing network to extend beyond the gaming market. The SVL President disclosed that the company processes some one million transactions daily, noting that the company is positioning to take advantage of this business prospect.
“We are in a transitional growth phase…which will be done through strategic acquisition…We are building today for tomorrow…We are accelerating while growing,” Yong Sang declared.