Jockeys on their horses in high-speed during a race at the Caymanas Park in Portmore, St Catherine (File photo)

SVL records J$2.47 billion profit in 2019

Jockeys on their horses in high-speed during a race at the Caymanas Park in Portmore, St Catherine (File photo)

Regional gambling company Supreme Ventures Limited (SVL) is reporting record profits for 2019 while contributing billions of dollars to the government.

The Jamaican-based company recorded net profit of $2.47 billion for 2019, an increase of $347 million or 18% from gross ticket sales of $73.16 billion, up $10.19 billion or 16.19% over 2018. In its audited financial report for 2019 SVL reported that it contributed over $7.8 billion to government agencies and related bodies.

This represents an increase of almost one billion dollars over 2018. Total winnings for the year amounted to $50.77 billion from 97 million tickets in an adult population of 1.7 million.

Supreme Ventures President & CEO, Ann-Dawn Young Sang

This is an increase of almost 15% over 2018. Post-to-Post Betting, which was acquired by SVL early last year contributed $39.39 million for the first six months of operation as a SVL subsidiary.

Generous dividend payments in 2019

The positive financial performance for 2019 enabled the company to offer a total dividend payout of 80 cents per share or 86% for 2019. This represents an increase of 2.6% in comparison to the total dividend payout in 2018.  Earnings per share of 92.59 cents led SVL to pay dividends to external shareholders of 60 cents for the quarter ended September 2019 and a further 20 cents that is being recommended as final payment for 2019.

SVL has invested some $2.5 billion Caymanas Track Limited since February 2017.

In her report to shareholders SVL CEO, Ann-Dawn Young Sang, said a portion of the earnings for 2019 were reinvested to support SVL Group’s ongoing acquisitions and capital expenditures. Total assets attributable to shareholders increased by $2.81 billion, arising from the acquisition of Post–to-Post Betting deposits on the assets of Champion Gaming and the implementation of International Finance Reporting System 16 (Leases) in 2019.

At the same time the number of SVL shareholders grew from 4,308 in 2018 to 5,343 in 2019.

All segments of the business performed better in 2019 than in the previous year reflecting increases of 10 to 15%. The lotteries and pins segment continues to deliver results above expectations based on the strategic intiatives implemented during the course of the year.

Earnings for the segment amounted to $3.52 billion, an increase of 17.46% over 2018. The Sports Betting segment (excluding Any Bet) achievwed gross ticket sales of $1.31 billion, which is a significant acheivement in a post-World Cup year.

Heavy losses again from racehorse segment

The racehourse segment continues to post heavy losses. However, the financial haemorrhaging in 2019 was not as severe as in 2018 when the losses amounted to over $300 million.

The losses for 2019 are down to $214 million, representing an improvement of 15% year over year. Also on the positive side is the fact that the racehorse segment recorded a 14% increase in revenues, an improvement of $845.6 million during 2019.

SVL racehorse segment was created after it acquired Jamaica’s loss making sole racehorse track, Caymanas Track Limited from the Jamaican Government in February 2017. Since then SVL 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.