Aug 2011 Financial News

SVL rationalises gaming business, again

Aug 24, 2011

Supreme Ventures Limited (SVL) has further rationalised its gaming lounge operations, having downsized its slots gaming and ceased its restaurant operations at Acropolis May Pen.

In late 2009, SVL closed its gaming lounge located at Hilton Kingston Hotel (now Wyndham Kingston Hotel) after closing its hotel and restaurant business located at Coral Cliff in Montego Bay in January 2009.

Under the Acropolis brand, SVL also operates a location in Portmore and one in Barbican, Kingston.

"In the recent announcement of our half year financial results, the management had indicated that there would be changes to the company's structure and operations," said SVL president and CEO Brian George.

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.

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.

Added George: "In 2007 when we opened this gaming facility in May Pen, the business model was based on the booming economic conditions, with the bauxite industry in full operations and research results that determined a need for entertainment in the town."

The challenges faced since the economic downturn in Clarendon and Manchester has seen the company cutting back on operating hours for efficiency in January 2011 and with the continued operating losses, the need to rationalise the business to curtail any further losses.

As a result of the rationalisation exercise, the gaming lounge will be re-aligned to a smaller lounge operation and the restaurant operations will cease. Approximately 15 employees have been made redundant or not have their contracts renewed. The rationalisation of operations at Acropolis May Pen is aimed at improving efficiency in operations, thereby contributing more to the Group's profitability.

The company will also continue operations for lottery, financial services (Cambio & MoneyGram remittances) and sports betting from the Bargain Village Plaza location.

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.


Source:
Jamaica Observer
Wednesday August 24, 2011

http://www.jamaicaobserver.com/business/SVL-rationalises-gaming-business--again_9509975#ixzz1VxM3m5Ha