Regulatory challenges affect Supreme Ventures Limited, but approval of remittance license highlighted as turning point
Management stated that the Group experienced numerous setbacks throughout the year, including the passage of Hurricane Beryl, which inflicted considerable damage to its retail network.
There were also regulatory challenges, which impacted race days and product offerings in the Guyanese market and; Unforeseen delays in the granting of a remittance license and the impact of Hurricane Beryl resulted in an approximately $1 billion loss in gross ticket sales which impeded the year-over-year growth and impacted on the receivables portfolio.
“The group was required to reposition itself amidst the challenges which led to an increase in selling, general and administrative expenses,” Management outlined.
The Group was also largely affected by increases in depreciation costs, provisions for doubtful debt, finance costs and other expenses.
EPS at year end was 68.03 cents to shareholders with dividend payout of $1.64 billion during the year.
The damage caused by Hurricane Beryl and Tropical Storm Raphael led to the destruction of stables and significant disruptions at various Off-Track Betting (OTB) locations, resulting in a sharp decline in revenue from betting channels.
Furthermore, prolonged power outages at the southern end of the island halted operations at several OTBs for months, critically limiting customer access to betting services and amplifying the financial strain.
Compounding these issues, the continued disharmony between the racing stakeholders, including government regulators, led to the cancellation of several races but also resulted in patron unrest following a controversial decision by the Jamaica Racing Commission (JRC) that led to the abandonment of a race meet.
Additionally, the closure of Golden Gate Fields and the loss of Sam Houston Racetrack removed key revenue opportunities. Notably, there was a significant increase in insurance premiums during the year, unrelated to the natural disasters, which added further financial pressure.
Collectively, these factors resulted in an estimated revenue loss of approximately 1 billion, highlighting the extensive challenges SVREL encountered throughout the year.
Management also noted that Supreme Ventures Fintech Limited (SVFL) has faced significant challenges in launching its financial services inclusive of bill payments, remittance and digital wallet services due to delays in obtaining approvals from regulatory bodies.
In addition to regulatory hurdles, SVFL has encountered setbacks in establishing partnerships with major utility providers.
Executive Chairman, Gary Peart stated, “Despite prior year losses associated with putting the required infrastructure in place, we expect to generate future profits to offset the losses incurred to date.”
November 2024, SVFL received full approval from the Bank of Jamaica to operate its remittance services, marking a pivotal turning point for the company. Furthermore, SVFL successfully secured agreements with all four major utility providers, enabling the company to facilitate bill payments on their behalf.
Peart stated, “The year 2025 is anticipated to be a transformative period for SVFL. With the foundational infrastructure now established, the company projects a shift towards profitability, supported by significant growth in its customer base and service offerings. Notwithstanding the setbacks faced within our economic and regulatory space, The Group’s operations remained strong, producing Gross Ticket Sales of $110.79 billion, a $224.65 million improvement over the previous year.”
This resulted in a Gaming revenue of $52.67 billion, a $1.79 billion or 3.52 per cent increase over 2023. Direct costs amounted to $40.32 billion which represents a 3.18 per cent increase over 2023.
SVL’s lottery segment saw results which were $569.78 million higher. Pin Codes revenues also continued to grow, ending the year at $1.27 billion or 10.30 per cent above 2023.
The Group generated positive cash flows from operations of $1.70 billion to close the year with a cash and cash equivalents balance of $1.41 billion (2023: $1.87 billion), including the impact of financing and investing activities.
SVL indicates that it has obtained a waiver for specific covenants under the terms of agreement with bondholders and other credit facilities and has maintained a strong asset base totaling $21.05 billion (2023: 20.29 billion).
Notably a $250Million investment was made into Acropolis Gaming Lounge to create an exclusive gaming and entertainment centre in Kingston. It now has 40 new state of-the-art gaming machines and now seats over 220 players simultaneously.
Photo: Gary Peart Executive Chairman SVL.
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