Sunday lottery earns Supreme Ventures $700 million in three months

BY STEVEN JACKSON Business writer jacksons@jamaicaobserver.com

Friday, August 09, 2013

Print this page Email A Friend!




Sunday lottery earned $700 million in its first three months of allowance, according to financials from dominant gaming company, Supreme Ventures Ltd (SVL).


"The company began Sunday/holiday lottery sales and game draws on 1st April 2013. The additional selling days positively impacted the revenues for the financial period, with Sunday sales contributing over $700 million to the revenues," said SVL in a statement adjoining the June-quarter financial accounts, signed by chairman Paul Hoo and CEO Brian George.


SVL earned $8.6 billion in total revenues for the June quarter compared with $7.2 billion a year earlier.


The directors added that the impact of Sunday sales on total revenues was, however, countered by a reduction in unclaimed prizes of $44 million, lower net win of $119 million from VLT gaming due to delayed opening of the refurbished Acropolis lounges and Odyssey, and $38 million from discontinued hospitality operations.


Government in February announced measures to raise $16.4-billion in additional taxes and offered SVL carrot-and-stick measures. It first allowed SVL to sell lottery tickets on Sundays and public holidays effective April 1, but concurrently forced them to incorporate an increase in lottery tax (GPT) rates from 17 per cent and 23 per cent to 20 per cent and 25 per cent respectively on nine games.


Christians view Sunday as a religious day of rest, and the local church body opposed the introduction of Sunday lottery for years.


Meanwhile, higher Lotto liabilities and taxation were blamed for the company posting $99.9 million in June-quarterly net profit or 69 per cent less than a year earlier.


"The decrease in net profit after tax was directly attributable to higher-than-designed lottery game liabilities and the impact of increased taxation on the gaming sector, which came into effect on 1st April 2013," stated financials.


The directors' outlook remained tempered by the weak economy and taxation.


"The third quarter is expected to be a continuation of the challenging times faced by many local companies, as the limited disposable income of many consumers will be directed towards back-to-school expenses," stated the joint statement in the financals. "While game liabilities will correct themselves over time, the company expects that the impact of the new taxation measures on the gaming sector will continue to adversely affect the financial results going forward."





ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT