Supreme Ventures’ Profits Dropped the Ball in 2024

• Supreme Ventures Limited (SVL) recorded net earnings of J$1.78Bn for FY2024, down 26.7% from FY2023 as rising expenses, increased finance costs, and a dip in other income weighed on the bottom line.

• SVL’s profit dip came despite a 3.5% increase in total revenues to J$52.67Bn. Higher revenues were supported by stronger performance in non-fixed odd wagering games and steady results from fixed odd wagering games net of prizes. However, Hurricane Beryl induced an approximately J$1.0Bn loss in gross ticket sales, which impeded the year-over-year growth and impacted its receivables portfolio.
• Other income was also down 25.9% to $0.67Bn amid lower gains on its financial assets.
• Direct costs rose by 3.2% to J$40.32Bn, driven by higher payouts for betting prizes, increased agent commissions, and greater contributions to regulatory bodies. These rising costs put pressure on margins, though gross profit still edged up to J$12.34Bn.
• Higher direct costs were compounded by operating expenses, which climbed 7.9% to J$9.11Bn. This reflected higher staff costs, increased spending on marketing and business development, and larger outlays for repairs and maintenance. These rising overheads weighed on operating profit, which declined by 8.3% to J$3.56Bn.
• With SVL’s stock price closing at J$19.06 at the end of Tuesday, the stock is down 23.0% year-to-date. This implies a P/E of 28.20x, which is higher than the 12.53x main market average.

(Source: SVL Financial Statements & NCBCM Research)