Archives for May 2013

SVL: Revenues down, big profit increase

May 26, 2013 by

Supreme Ventures Limited posted net profit after tax for the first quarter of $301 million, a 64 percent increase over $184 million for the comparative period in 2012. The improvement was directly attributable to low lottery game payments for the quarter and a huge change to taxation charge on profit. While pretax profit climbed by $38 million, the tax on profit fell from $162 million in 2012 to just $82 million in 2013. The reduction in taxation is not sustainable. The rate used in the quarter was 25 percent, going forward it will be 30 percent. In all likelihood the charge for the first quarter may also have to be adjusted upwards to 30 percent as well.

“We continue to remind our investors that volatilities in game liabilities can adversely impact profitability in any financial quarter. The overall profitability of the company was also positively impacted by a $791.3 million reduction in direct expenses, reorganization of the company’s operating structure and interest income”, a management statement said.

SupremeVenturesSVLlogo_150x150Challenges | The second quarter onwards is poised to be a very challenging, as new tax measures for the sector took effect in April 2013. The tax package aims to collect a further $1.5 billion from the gaming industry.

The measures increase the tax rate for each lottery game from 17 percent to 20 percent and 23 percent to 25 percent respectively. The Company has taken the decision to absorb the fees for 2013, in light of what they see as uncertainty with the implementation process for this new licensing regime. They also speak of the elimination of the unclaimed prize allocation previously retained by the company. This allocation now has to be paid over to the Betting Gaming and Lotteries Commission. The effect of these new tax measures will no doubt affect the Company’s ability to achieve the levels of profitability projected over 2012.

SupremeVenturesSVLAcropolislogo150x150Revenues | Revenue for the quarter was down 9 percent to $7.4 billion compared to $8.15 billion for the corresponding quarter in 2012. The gaming company management indicated that the decline was mainly due to decreases in lottery and VLT revenues of 11 percent and 39 percent respectively when compared to the same period in 2012. The significant decline in VLT revenues was directly attributable to closure of the Coral Cliff gaming lounge in Montego Bay for refurbishing which was rebranded and reopened as Acropolis Montego Bay on 7th March. Acropolis Portmore was also temporarily closed in January for refurbishing and new layout of the gaming floor. It is yet to be reopened. The Odyssey Gaming Lounge opened on 7th February and is enjoying early market support.

The Earnings per Share was $0.11, compared to $0.07 for the corresponding period in 2012.

The company has equity of $4 billion and borrowed debt of only $324 million. Cash was $1.45 billion at the end of March, more than enough to cover short term liabilities.

SupremeVenturesSVL_150x150A dividend of $0.10 per share amounting to $263.725 million was paid in March. The company says it continues to execute an aggressive dividend payment policy, of quarterly payments based on the company’s performance.

During the quarter, the company commenced a scheme of amalgamating the betting, gaming and lottery operations of its subsidiaries into a single operating entity called Prime Sports (Jamaica) Limited.

The Betting Gaming and Lotteries Commission renewed the lottery license which has been issued to Prime Sports (Jamaica) Limited and will expire in January 2033. The company’s Bookmaker’s Permit was also renewed and issued to Prime Sports (Jamaica) Limited with the next renewal date being 31st March 2015.

Stock outlook | The stock traded on Monday, 2oth May at $3, up from $2.80 before the release of the results and is up from $2.60 at the start of May. Investing in the stock with the hope of short-term gains seem to be a bit of a gamble at this time.

Filed Under: Company News, Company Results Tagged With: ,

Inflation rate down in April

May 25, 2013 by

Jamaicans were facing slightly lower rate of inflation in April than in the earlier months of the year as the consumer price index fell to 0.4 percent for the month, the lowest since the start of the year. This comes against increased taxation on a number of items beginning of April.

As the All Jamaica ‘All Divisions’ Consumer Price Index for April 2013 registered a 0.4 per cent rate of inflation., ‘Food and Non-Alcoholic Beverages’, the heaviest weighted division in the computation of the index, recorded an increase of 1.0 per cent. This was due mainly to the upward movement in the prices for, ‘Fruit’,’ Meat’ and ‘Bread and Cereals’. This division’s rate was however moderated by a 1.6 per cent decline in the rate for the division ‘Housing, Water, Electricity, Gas and Other Fuels’, the third heaviest weighted division in the Consumer Price Index Basket. This was the result of a reduction in the billing rate for electricity in April relative to March. All other divisions recorded increases lower than 1.0 per cent, with the exception of ‘Clothing and Footwear’, which increased by 1.1 per cent.

Consumer-Price-Index-CPI-Inflation280x150The other divisions that recorded increases were ‘Alcoholic Beverages and Tobacco’ 0.7 per cent,  ‘Furnishings Household Equipment and Routine Household Maintenance’ 0.7 per cent, ‘Health’ 0.2 per cent, ‘Transport’ 0.3 per cent, ‘Recreation and Culture’ 0.7 per cent, ‘Restaurants and Accommodation Services’ 0.4 per cent, ‘Miscellaneous Goods and Services’ 0.8 per cent,  No movement was recorded for ‘Education and ‘Communication’  .

The Statistical Institute of Jamaica collects and collates the data and compiles them into three regions. All three recorded increases; Greater Kingston Metropolitan Area (GKMA) 0.7 per cent, Other Urban Centres (OUC) and Rural Areas each  increased by 0.3 per cent.

The movement of prices reflected a calendar year-to-date increase of 3.2 percent.

Filed Under: Economy Tagged With: ,

TTSE: Thursday, 23rd May 2013

May 25, 2013 by

Trading was very light on the Trinidad & Tobago Stock Exchange today, with just 5 securities trading of which 2 advanced, 1 declined and 2 traded firm.

Activity on a very lackluster market resulted in 150,034 shares trading on the main market valued at $330,999. Trinidad Cement was the volume leader with 126,800 shares changing hands for a value of $122,524, followed by Angostura Holdings with 15,900 shares worth $143,100. Prestige Holdings accounted for 6,765 shares with a value of $63,253.

Clico Investment Fund traded 46,300 shares valued at $974,779. All shares price changes were modest ranging from minus 1 cent to a gain of 3 cents.

5 stocks were being offered at prices below their last selling price and 3 stocks had bids above their last selling price.

TTSEMay23

Filed Under: Stock Market, TTSE Market Tagged With: , ,

FX: Wednesday, 22 May 2013

May 25, 2013 by
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USD | The foreign exchange market was in balance today as a total of US$24.2 million were purchased and US$23.3 million sold. The rate paid on average for buying the dollar was J$98.472, slightly lower than Tuesday’s buying rate and they sold it to the public for an average of J$99.11, slightly up on yesterday’s rate.  The highest buying rate was J$99.35, up 18 cents on Tuesday’s rate and the lowest was J$81.16 17 cents lower than on Tuesday. Sales took place at J$104.11, some 11 cents more than Tuesday on the high end and J$96.20 on the low end, 15 cents more than Tuesday’s lowest rate.

CAD | Purchasing of Canadian dollars amounted to CAN$522,435 at an average rate of J$94.1682 which was just 2 cents less than the rate on Tuesday. CAN$990,719.46 were sold at an average of J$97.3652 but buyers had to pay 7.5 cents more than the Tuesday average price to get the currency. The highest buy rate for the Canadian dollar was J$96.50 which was 30 cent less than Tuesday and the lowest buy rate was 17 cents less at J$77.27. On the sell side, the highest selling rate was J$99.62, which was lower than Tuesday by 21 cents and the lowest sell rate was J$1.40  more than Tuesday at J$93.80.

GBP | GBP 1,478,798.92 were purchased at a rate of J$148.0187, down 49 cents on Tuesday and GBP 1,112,854.53 were sold at J$149.662, down $1.08. The highest buy rate for the Pound was J$150.50 which was 50 cent less than Tuesday and the lowest buy rate was 62 cents less at J$121.1. On the sell side, the highest selling rate for the Pound was J$153.02 which was lower than Tuesday by J$3.90 cents and the lowest sell rate was $0.55 cents less than Tuesday, at J$145.90.

Overall the market traded the equivalent of US$26,983,184.49 and sold the equivalent of US$26,358,984.87.

FX_TRADE+Currency+May22

FX_TRADE+Currency+May22

Filed Under: FX Market, Stock Market Tagged With: , ,

Pulse looking better

May 23, 2013 by

Pulse Investments disclosed earnings in the March quarter of $45.4 million a slight improvement over the $44.3 million generated in the 2012 period. For the nine months to date, earnings are up to $148 million against $136 million in 2012. The company generated revenues of $210 million and $171 million for the nine months to March 2012. While the net earnings are close to 2012 figures, the quality this year is better with $99 million being earned to date before a $51.5 million appreciation in investment property (2012 $82.5 million) was booked as income thus boosting the net profits.

Administrative expenses declined in both the quarter and for the nine months this year versus 2012. Earnings per share is put at 16 cents in the quarter and 53 cents year to date suggesting that around 70 cents earnings per share for the full year to June is possible.

Pulse280X150The company’s statement of financial position is undergoing a slow metamorphic change as loan liability is down to $24.4 million from $26 million in 2012. Cash funds are up to $13.3 million from $9.9 million in March last year. Trade receivables are down from $50 million at the end of March last year to $22 million this year. Payables are up from $38.3 million to $45.5 million.

Pulse shares last traded at $1.60 but there haven’t been any serious takers for them with an offer in place for several months at $1.60. The stock is undervalued but there is not likely to be any strong demand for a while. All that could change, if the stock market continues to push the prices of the better quality stocks upwards forcing investors to look elsewhere for stocks to invest in. Pulse could come into its own.

Pulse Investments’ business is focused on grooming models and contracting them out to the trade, staging Caribbean Fashion Week, ownership of shops and other property for rent.

Filed Under: Company News, Company Results Tagged With: ,

JSE: Wednesday, 22nd May 2013

May 23, 2013 by

JSE flashes a strong bull signal  | When the Jamaica stock market closed there were 12 stocks which had bids higher than the last selling price with no offers below the last selling price, a strong bull signal. Additionally 3 stocks traded at 52 weeks high and the advance/decline ratio was 3 to 1 with 13 stocks gaining and 4 down.

The all Jamaica index closed up 1,025 points ending the day at 86,150 and the main market index was up 582 points closing at 86,275.28.  The all Jamaica index is just below the February 6th level of 87,430 points. The most telling bullish sign is that the market index has decisively broken through the upper resistance level of the major downward slopping channel that goes back to 2004. There is one short-term resistance level to break through and this should happen in a day or two as the all Jamaica index is just touching that line. With the positive number of stocks that can’t get orders filled at current levels, the break will happen soon.

Newly listed Caribbean Cream traded as high as $1.20 but closed at $1.1 as over 861,000 shares traded. The offer closed at $1.10 with a bid of $1.07. Carreras closed up $2.48 trading over 86,000 units to close at $60. D&G was up 30 cents closing at $4.90 on very small volume. Grace gained 50 cents closing at $60.50 with only 2,000 shares trading. Junior Market Honey Bun lost 50 cents closing at $3.50 but only 1,000 shares changed hands. Lasco Manufacturing posted a $1.19 gain trading at $12.50 with just 6,000 of the stock traded. Pan Jam lost $3.59 to close down at $54.01 and 11,619 shares traded. Scotia group gained $1.39 closing at $$21.60 and Scotia Investments is up $3 to close at $26.50 with 246,800 units by one buy order on the bid at the last selling price.

Trading took place in 2,700,407 shares with a value of $20,978,749.

JSEINdicesMay22

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

Carreras gives 15.3% return

May 23, 2013 by

Carreras Limited has declared an interim dividend of $1.30 per share and a special dividend of $0.94 per share payable on June 20, 2013 to shareholders on record as at June 6, 2013. The ex-dividend date is June 4, 2013.

This latest dividend brings the total paid since June last year to $7.64. Shareholders who bought shares around the $50 level when Lascelles sold a block of the Carreras shares last year, have enjoyed a 15.3 percent dividend income return. The stock closed today at $60, making a total gain of 35 percent within a year.

Carreras paid an interim dividend of $1.40 per share and a special dividend of $1.20 per share on March 13, 2013, an interim dividend of $1.30 per share was paid on December 11, 2012 and another of $1.50 per share was paid on August 23, last year.

Filed Under: Company News, Company Results Tagged With: , ,

C&W: Less jobs, more capital spend

May 22, 2013 by

As the Cable & Wireless worldwide operations strive to adjust to changes in market forces and consumer demand, the group has been undergoing changes. Within the Caribbean region, stiff completion and tight economies as well as changes in the way people communicate have forced changes in their businesses in the region.

In an effort to improve results for the future, Cable & Wireless Caribbean incurred net exceptional items (excluding impairments) of US$50 million relating to redundancy and restructuring programmes in the Caribbean. The prior year charge of US$66 million was primarily in respect of restructuring activities in The Bahamas and Panama.

What about Jamaica? |  Cable & Wireless Caribbean incurred US$26 million as an exceptional charge for cash payouts for redundancy and restructuring programmes. This charge was related to Jamaica and the eastern Caribbean but our calculations suggest that the bulk relates to Jamaica. Cable & Wireless Jamaica had indicated that it was making 300 persons redundant earlier this year and outsourcing the field force technician services to Erickson. The redundancy charge will wipe out any hope that may have existed for the Jamaican operation to return to profit in March 2013. In addition, the Jamaican operation would have picked up a large exchange rate adjustment charge on its foreign currency denominated debt. The stage should, however, be set for it to return to profitability in the 2013/14 year.

cable-and-wireless280x150There was also exceptional impairment and depreciation charge of US$86 million in the year ended March 2013. This was mainly due to the difficult environment in the Eastern Caribbean. The prior year charge consisted of a non-cash impairment and accelerated depreciation charge of US$244 million primarily due to poor financial performance in Jamaica.

Capital spend continues | C&W continues to spend on capital improvements within the Caribbean basin which includes Panama. Capital investments continued to be in 4G/HSPA+ mobile data networks supporting smartphone sales in Panama, The Bahamas, Barbados, BVI, St Lucia and Cayman, selective pay TV investments, and improvements to the fixed broadband network. These fixed broadband investments include continuing the fibre roll-outs in the Caribbean and completing the Next Generation Network in The Bahamas. They have also pursued strategic investments in transmission capacity and cable systems to support both retail and carrier sales asa well as advancing billing and customer relationship management systems.

They have completed the second year of investment in the Bahamas having invested around US$100 million in capital projects during that period.

Filed Under: Company News, Company Results Tagged With: ,

C&W Caribbean still restructuring

May 22, 2013 by

The Caribbean contributed revenue of US$1,120 million to Cable & Wireless Worldwide revenues in the year ending March 2013. The revenues for the region were down 4% on the prior year.

Mobile revenue of US$527 million was down 1% on the prior year driven principally by lower average rate per unit (ARPU). Subscriber numbers were broadly flat on the prior period with a 16 percent growth in Jamaica following regulatory changes which enabled improved competitive positioning, stimulating subscriber and usage growth offset by churn in the Eastern Caribbean. There has been sustained growth in mobile data usage following the launch of high-speed networks in a number of islands during the year and the Company plans to expand on this where commercially viable.

Broadband & TV | Revenue fell by 2% to US$120 million for broadband & TV operations. LIME TV was launched in Barbados during the year and over 3,000 customers have signed up subscriptions to date with plans to roll out IP based TV services to a number of islands in the coming year.

cable-and-wireless-cables150x150Fixed voice revenue at US$290 million was 10% down compared to the prior year. Voice substitution continued across the region, although the ARPU and revenue decline this year was mainly influenced by Jamaica where regulatory changes and the introduction of a special telecommunications tax led to lower revenues. Enterprise, data and other revenue at US$183 million was down 7% on last year due principally to a lower level of cable capacity sales in the period.

Gross margin | Operating costs were 5% down compared to the prior year at US$578 million. Across the Caribbean, the Company has embarked on targeted cost reduction programmes to improve efficiency and build a sustainable operating base. During this year, staffing headcount has reduced by 12% to 3,421 and there was further outsourcing of field force technician services in Jamaica. Much of the improvement came from the Bahamas business which has seen a full year’s benefit of the restructuring undertaken following acquisition of the company in 2011.

What about C&W Jamaica? | Read IC Insider’s ‘C&W: Less jobs, more capital spend‘

Filed Under: Company News, Company Results Tagged With: ,

TTSE: Wednesday, 22nd May 2013

May 22, 2013 by

No aggression in trades | Market activity continues to meander along as traders nibble away at prices with very little changing from day to day. Wednesday’s trading session was no exception as price changes on the Trinidad & Tobago Stock Exchange were again moderate with the highest gain being 12 cents for Scotia Bank and the highest loss was 5 cents for Point Lisa Industrial Port Development.

There was trading in 16 securities of which 7 advanced, 4 declined and 5 traded firm. Main market volume was 665,031 shares valued at $6,596,902.44. Point Lisas Industrial Port Development Corporation traded 349,209 shares for a value of $1,239,942, followed by Angostura Holdings with a volume of 207,100 shares traded for $1,863,900, while ANSA McAL added 30,446 shares valued at $2,046,580. Clico Investment Fund traded 6,860 shares for a value of $109,332.

An indication of market sentiment is to be found in the both the advance/decline ratio which has been positive for several trading days as well as in the number of stocks closing with bids above last selling price or the offer below the last selling price. At today’s close there were 5 stocks with bids higher than the last selling price and 4 with offers below. One stock traded at a new 52 weeks high.

TTSEMay22

 

Filed Under: Stock Market, TTSE Market Tagged With: , ,