Even against the backdrop of COVID-19 and the entry of Izizzi and Luck Play to the gaming market during its first quarter ending March 31, 2021, Supreme Ventures Limited (SVL) saw a 33 per cent increase of gross ticket sales to $23.8 billion in its 20th anniversary year. This while managing to achieve a record total gaming income of $10.7 billion which was six per cent higher than the prior quarter.

SVL’s core non-fixed odd wagering games, horse racing and pin codes segments recorded 17 per cent growth to $6.69 billion compared to its fixed odd wagering games which registered a nine per cent decline to $4.02 billion.

Despite this sharp uptick in business from the revenue standpoint, the company’s gross profit took a 12 per cent hit to $2.02 billion as the group increased payouts for its games during the quarter with its iconic Cash Pot game now rewarding $305 for a $10 bet compared to the $260 at the end of 2020.

Direct costs rose 11 per cent to $8.69 billion during the quarter. Even with this increase in costs, the SVL report noted that there was a 40 per cent increase in prizes paid amounting to $18.3 billion, which they viewed as putting more money back into the hands of the consumer to help drive the overall economy.

The lottery segment reported a 47 per cent decline, its overall result to $629.87 million while sports betting and pin codes contributed $245.82 million and $46.22 million, respectively, to the group’s segment results.

Although SVL included horse racing and video lottery terminals as part of its sports betting segment, Gary Peart, executive chairman of SVL, noted that the company’s horse racing business was on track to record profitability while being driven by mobile platforms. Sports betting achieved a record 50 per cent increase in gaming income to $3 billion.

With selling, general, and administrative costs two per cent higher at $1.32 billion along with lower other income, SVL’s operating profit declined by 29 per cent to $752.71 million. Through positive finance costs and lower taxes, SVL’s consolidated net profit closed the period at $601.7 million with net profit attributable to shareholders down by 20 per cent to $592.26 million. The SVL report noted that this decline in profitability was expected due to the Government’s COVID-19 restrictions, higher lottery liabilities and introduction of competition. Total assets declined by four per cent to $14.9 billion while total liabilities and equity attributable to shareholders closed the period at $9.26 billion and $4.03 billion, respectively.

During the quarter, SVL acquired 51 per cent of microfinance company McKayla Financial Services Limited for $51 million, which valued the company at $100 million. The full acquisition accounting will be presented once the calculations are completed. SVL spent a further $374 million to acquire another 29 per cent of the shares in Post to Post Betting Limited. This brings its total investment in the bookmaking company to $946.22 billion for its 80 per cent stake. SVL raised $3.5 billion in debt financing to facilitate different corporate deals which has included its future expansion plans.

In closing out the report, Peart noted the success of the company’s Supa Sellaz programme and online channels such as SV Games, JustBet Mobile and MBet which are expected to fuel growth. SVL is also moving towards supporting SMEs (small and medium enterprises) more through its Supreme Ventures Services Limited which signed a partnership with Graft Ventures as part of its offerings to the space.

“As we celebrate our 20th anniversary in 2021, the Supreme Ventures Group is humbled by the extent of customer loyalty and the resilience of our business during this tremendously challenging time in world history. We are extremely excited at the potential of the coming innovations, improvements and the launch of key initiatives that will further support and grow our business,” Peart said.

SVL has maintained its commitment to shareholders with the declaration of a $0.20 dividend totalling $527.45 million set to be paid on May 21 for those on record as of May 7. Despite this being a 20 per cent decrease from a nominal standpoint, SVL’s dividend payout ratio remained the same at 89 per cent.