Supreme Ventures continues to bleed heavily from investment in CTL

Business

Supreme Ventures continues to bleed heavily from investment in CTL

Chairman optimistic for 2020

BY DURRANT PATE
Observer business writer

Sunday, February 23, 2020

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Supreme Ventures Limited (SVL) continues to bleed heavily from its investment and acquisition of Caymanas Track Limited (CTL) having lost upwards of $500 million since its takeover 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.

Speaking in an interview with Sunday Finance, SVL Chairman, Gary Peart points out that the losses in 2018 were over $300-million while the losses up to September 2019 were some $200-million. He conceded that when the final numbers are tallied for 2019, the losses for that year will be even greater.

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 with the Government 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.

 

OPTIMISM FOR 2020

The SVL chairman is optimistic that the future for SVL and its investments in CTL is very bright. “We look forward to a better outturn for 2020,” was his response to the question about the level of his optimism.

SVL President and CEO Ann-Dawn Young Sang sought to put a more positive spin to the perennial losses pointing out that “SVL know that it would take some time before we see any improvements. However, many opportunities are opening up.”

Addressing Mayberry's Monthly Investor Forum last Wednesday, where she was the guest speaker, Young Sang was drawn into defending the CTL acquisition as persons attending the forum posed questions about the losses from CTL 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. She gave an elaborate overview of the future of SVL, noting that mobile gaming will be a significant focus 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,” Young Sang declared.


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