Supreme Ventures Limited reported net profit of $2.42 billion for the year ended December 31, 2020, representing a decline of $52.69 million or 2.13 per cent over prior year.
Profits arose from gross gaming income of $39.36 billion, representing an increase of $843.89 million, or 2.19 per cent over 2019.
Direct costs amounted to $30.61 billion or 0.02 per cent lower than prior year.
Total winnings for the year to customers amounted to $52.02 billion, an increase of 2.46 per cent over prior year.
Included in direct costs are contributions to Government agencies and related bodies of over $8.25 billion, a record increase of 5.2 per cent, or $409.86 million over 2019.
“Supreme’s focus on digitisation and improving the mobile…continues to be seen as an area of opportunity to enhance the customer experience and the ease of doing business.”– Chairman Gary Peart
Chairman Gary Peart stated, “SVL continues to contribute substantially to the Government coffers at a rate many times more than our profitability.”
He outlined that the company had implemented significant cost savings initiatives, even before the pandemic, while continuing to invest in the build out of its infrastructure.
Peart stated, “We have become more agile in our ability to meet customer and stakeholder requirements and have improved communications within our retail network.”
During the year, SVL acquired the assets of Champion Gaming Limited amounting to $1.5 billion.
Peart said SVL continues to leverage its fixed distribution network by investing in new complimentary businesses and product lines.
This year will see the advent of new financial services and related transactional product offerings which will benefit the retail network and the main operations, he said.
Total assets attributable to shareholders increased by $6.11 billion to $15.53 billion. The major increase is attributable to the acquisition of the assets of Champion Gaming Limited in January 2020, deposits on gaming equipment and the net proceeds of the corporate bond issued in the 4th quarter.
The Group generated positive cash flows from operations of $3.67 billion to close December 31st, 2020 with a balance of $6.26 billion representing an increase of 74.13 per cent over prior year.
In addition to cash provided by normal operations, the Group increased third party loans by $3.50 billion, primarily to assist in the funding of acquisitions.
Peart commented, “Despite COVID-19 and resulting closures in the Sports Betting segment, all segments performed creditably in comparison to the previous financial year reflecting increases of 4.51 per cent.”
Lotteries and PINs segments, he noted, continued to deliver results above expectations based on the strategic initiatives implemented during the year earning $4.44 billion, an increase of 26.02 per cent over prior year.
The chairman said “the build out of the agent network in Guyana remains a key area of focus and we have seen significant strides in building out the base to support the accelerated growth of the business in tandem with the expected economic growth in the country.
“Supreme’s focus on digitisation and improving the mobile offering for lotteries, sports betting and horse racing continues to be seen as an area of opportunity to enhance the customer experience and the ease of doing business.”