Profits jumped 32 percent to $3 billion from a 15.6 percent jump in revenues to $50.77 billion at Jamaica’s leading gaming company, Supreme Ventures, for 2022 over 2021, following a virtual stagnation in profits since 2019.
Supreme Ventures moved up from $24.25 at the end of last week to over $30.50 after the results.
Gross profit rose 20 percent to $11.3 billion, from $9.38 billion in 2021, as direct cost climbed slower than revenues, with a 14.4 percent increase in direct cost to $39.6 billion from $34.6 billion in 2021.
Selling, general and administrative expenses increased by 13 percent to $7 billion from $6.2 billion in 2021 and finance cost jumped to $535 million from just $30 million in 2021 was reduced by $374 million foreign exchange gains in 2021 compared with a loss of $82 million in 2022. Taxation fell to $781 million from $951 million in 2021, with the reduction due mainly to a credit of $203 million relating to losses at a subsidiary that was recognized in 2022.
“We have maintained our ongoing focus on managing costs”. “Our successful implementation of significant cost-saving initiatives has allowed us to continue our investment in the buildout of the company’s infrastructure,” the chairman Gary Peart advised shareholders in his update on the Group’s performance for 2022.
Segment results show the Lottery division generating a 19 percent increase in revenues to $23.6 billion and a profit of $5.1 billion compared with $19.85 billion and a segment profit of $3.28 billion in 2021. Sports Betting delivered a 20 percent rise in revenues of $14.4 billion for 2022 versus $12 billion in 2021 with a profit of $1.17 billion in 2022, up from $681 million, revenues for Pin Codes rose just 6 percent to $12.3 billion up from $11.6 billion with a profit of $333 million up from $214 million for 2021.
Gary Peart, Chairman
Current assets slipped from $7.6 billion in 2021 to $7 billion in 2022, while current liabilities climbed from $5.15 billion to $6.8 billion, primarily due to a $1.1 billion increase in prize and other liabilities owing. Shareholders’ equity rose to $4.69 billion, borrowed funding amounts to $5.8 billion due beyond a year and amounts due within a year stand at $540 million.
Earnings per share for the year amount to $1.15 is up from 87 cents in 2021, ICInsider.com projects earnings of $1.50 per share for 2023, with the price of the stock currently trading at $30, now at PE of 20 times earnings.
The Group paid four dividends of 67 cents last year, amounting to $2.45 billion, up from $2.1 billion in 2021 and just announced an interim dividend due to be paid in April of 34 cents per share, that will bring the total payment per share to $1.01 or 88 percent of profit.
The Group generated positive cash flows from operations of $3.66 billion to close 2022, with a cash and bank balance of $2.97 billion, representing a decrease from $44 billion at the end of the prior year.
“Digital innovations such as our lottery online platform SV Games, access to sports betting online through Just Bet Mobile, casino type games with Acropolis Online and horseracing through MBet are all growing mobile channels, from which we expect great things to continue. Our flagship lottery products continue to grow and the rebirth of the Instants product, “Scratchaz” has been an overwhelming success, introducing new market segments to the gaming sector. In addition, SVL has introduced the universal top up channel, “Charge Up”, which will ultimately become the source of top up for a variety of products and services from education to transportation. The SVL group’s digitization is comprehensive and its potential for growth is exponential,“ Peart informed investors.
