Regional gaming company Supreme Ventures Limited has seen a slight decline in profits in 2021 but revenues registered a slight uptick.

Taxation for the year fell 19 per cent to close at J$951.38 million compared to J$1.18 billion in 2020, thus resulting in net profit of J$2.33 billion, a four per cent decrease from the J$2.42 billion recorded in the prior comparable period. For the December quarter, net profit closed at J$785.07 million, down from the J$869.16 million posted in 2020.

Net profit attributable to shareholders amounted to J$2.29 billion versus J$2.38 billion booked in the prior corresponding period. For the quarter, net profit attributable to shareholders totalled J$770.44 million, down from J$836.55 million.

Commenting on the performance the managed pointed to the positive cash flow position of the group, which while slightly down is owing to certain positive development.

Positive cash flow development

According to the management, “the group generated positive cash flows from operations of J$2.77 billion to close on December 31, 2021, with a balance of J$4.37 billion representing a decrease of 30.12 per cent over the prior year. This decrease is attributable to the business acquisitions completed during the year, purchase of other fixed assets, payment of dividends and taxes.”

The management added that, “all of which were to position the group for further growth after the pandemic and easing of restrictions. The group met all requirements and covenants under the terms of agreement with bondholders and other credit facilities during the year.”

Supreme Ventures for the year ended December 31, 2021, reported a 12 per cent increase in ‘Total Gaming Revenue’ from J$39.36 billion in 2020 to J$43.92 billion in 2021. For the December quarter, ‘Total Gaming Revenue’ closed at J$12.21 billion, up from J$11.42 billion).

The management explains that, “the group continues to leverage our fixed distribution network by investing in new complementary businesses and product lines. In 2021, we launched several new products and channels in keeping with our promise to provide ease and convenience through increased digitization for our customers.”

Supreme Ventures’ focus on digitisation and improving the mobile offering for lotteries, sports betting, and horseracing, continues to be seen as an area of opportunity to enhance the customer experience.

Revenue performance

Revenues from the company’s segments were as follows:

• Revenue from ‘Non fixed odd wagering games, horse racing and pin codes’ amounted to J$26.39 billion (2020: J$22.85 billion), a 16 per cent increase.
• Income from fixed odd wagering games, net of prizes totaled J$17.53 billion (2020: J$16.51 billion), a six per cent rise.

Direct expenses recorded rose to close the period at J$34.59 billion when compared to J$30.61 billion for the same period in 2020. Direct costs include contributions to Government agencies and related bodies of over J$9 billion, a record increase of 8.50 per cent, or J$708.85 million over 2020.

Supreme Ventures Limited continues to be one of the largest contributors to the Government coffers at multiple times its profitability. Selling, general and administrative expenses grew 24 per cent for the period to J$6.16 billion (2020: J$4.95 billion), while recording ‘Other income’ of J$221.78 million relative to J$126.67 million for the prior period in 2020.

Net impairment losses on intangible assets closed at J$120.23 million (2020: J$22.06 million). Consequently, operating profit for the period fell 15 per cent to J$3.33 billion relative to $3.90 billion reported in 2020. Operating profit for the quarter totalled J$1.16 billion (2020: J$1.47 billion).

Finance costs fell to J$30.40 million (2020: J$269.87 million). Supreme Ventures also recorded a revaluation loss on investment property of J$18.74 million (2020: J$34.95 million).