Aug 2011 Financial News

SVL profit jumps on core lottery business

Aug 17, 2011

SUPREME Ventures Limited (SVL) posted a 72 per cent year-on-year increase in net profit during the first half of 2011 as profit from its lottery gaming business jumped 54.4 per cent.

The company's sports betting business and gaming and hospitality segments, on the other hand, posted higher losses over the respective periods.

SVL reported net profit of $401.5 million for the six months to June 30, 2011, or an increase of $167.7 million, when compared to $233.8 million net profit after tax for the half year of 2010.

Most of the increase in profit was made in the second quarter when net profit of $196.08 million this year, represented a 195.5 per cent increase over year-earlier levels.

The total revenues for the six-month financial period of $13.2 billion, represents a 5.7 per cent increase or $715 million, compared to $12.5 billion total revenues for the corresponding period in 2010.

Across the group, the lottery business posted $554.5 million in segment profit for the first half of the year, compared to $359.1 million in the prior year.

The Cash Pot game model is designed for 72 per cent prize liability. Even though the game liability was 68.42 per cent for the first quarter of the financial year, the second quarter liability was above the game design at 76.3 per cent. This resulted in increased prize liabilities of approximately $191 million for the second quarter.

At the same time plans are in place to launch the Pick 4 game in the fourth quarter and plans are far advanced for its implementation.

On the other hand, the gaming giant sports betting business posted higher losses, $76.8 million in the first half of 2011 compared to $50.3 million in the corresponding period in 2010. Its gaming and hospitality business — under which Acropolis and Coral Cliff Gaming lounges operate — posted a $92-million loss in the review period compared to $25.6 million in the prior year.

"Plans are also far advanced for upgrading the Acropolis and Coral Cliff Gaming lounges and the installation of additional games and game themes on the floor," said the company in a statement to shareholders accompanying the financial statements.

The company also said it "continues on a path for improved profitability in 2011".

"As such, the management team is focused on initiatives that will improve the efficiency of the Group's corporate structure and operations," it added. "In the coming months, it is anticipated that several announcements will be made with respect to rationalisation of the Group's structure and changes to subsidiary operations."


Source:
Jamaica Observer
Wednesday August 17, 2011

http://www.jamaicaobserver.com/business/SVL-profit-jumps-on-core-lottery-business_9463630#ixzz1VIQjxZPe