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Financial News

Jun 2009 Financial News

Supreme sees improvement from restructuring

Jun 15, 2009

Considerably less persons left their winnings from popular lottery games such as Cash Pot and Lotto uncollected during the three months that ended April 30, 2009, and gaming company Supreme Ventures Limited (SVL) paid out 16 per cent more in prizes and lottery expenses during the review quarter.

According to SVL's financial statements for the quarter, lottery expenses totalled $5.6 billion, or 16 per cent more than the comparative quarter in 2008, while unclaimed prizes totaled $11.8 million compared to the $15.3 million during the corresponding quarter last year.

Higher payout did translate into lower segment results for SVL's lottery segment, albeit marginally - the gaming and hospitality company reported $205-million operating profit for its lottery segment in the April quarter of this year compared to $216-million operating profit for the comparable period in 2008.

But all other segments of the company showed improvement including the group's gaming and hospitality segment which underwent restructuring earlier this year.

In January, SVL pulled its Daily Bingo game off the air and made the decision to close down its Coral Cliff hotel and Ma Lou's restaurant operations, which along with new opening hours, led to 43 positions being made redundant.

The cutbacks formed part of restructuring exercise aimed at improving efficiency at the gaming company's Montego Bay operations.

The $13.8-million operating loss incurred by the group's gaming and hospitality section reported for the three months ending April 30, 2008 was reduced to a $1.6 million loss.

The company said that even though gaming lounge revenue increased gaming and hospitality segment operations continued to be negatively impacted largely by losses in the hospitality section.

By Sunday Finance calculations, SVL saw a 20.8 per cent increase in video gaming/slots revenue.

The group's financial services - Moneygram & Cambio - segment saw its operating profit increase from $7 million during the April 2008 quarter to $8.6 million while its operating profit from pin codes and other areas increased from $24 million to $26.7 million.

As a result, SVL reported higher net profit of $151 million, up from $135 million during the comparative quarter in 2008.

Source: Jamaica Observer