(Jamaica Observer) Supreme Ventures Group is putting much hope for increased profitability from its newest market, Guyana, where operations in the just-ended third quarter of 2019 recorded a massive loss of $53.7 million.
In spite of this, the locally based regional gaming company reports that “the roll-out and growth of additional products in Guyana will increase our revenue base, as one of the fastest-growing economies in the world, as we anticipate a good return on this year’s investment in the future”.
Supreme Ventures invested some $100 million in setting up gaming operations in the South American peninsula last December. The gaming operations feature wagering on races simulcast from Caymanas Park, Jamaica, and North America along with video gaming terminals with sports-themed games.
The Guyana operations have already launched its sports betting product and implemented English racing simulcast for their growing customer base.
Supreme Ventures states, “Sports betting in Guyana, is growing in popularity among gamers. In addition, the Guyana subsidiary has also activated its first set of third-party retail locations.“
FINANCIAL PERFORMANCE
In its third-quarter report to shareholders, Supreme Ventures says for the nine-month period ended September 30, the group recorded profits of $526.53 million, representing an increase of $57.66 million or 12.3 per cent compared with the corresponding period in 2018.
“The financial results included the performance of the recently acquired operations of Post To Post Betting of $28.07 million with profits allocated to non-controlling interests of $13.76 million,” the report stated.
Total gaming income and other revenues for Q3 recorded a 16.2 per cent increase of $1.32 billion compared with the same period in 2018, while direct expenses of $7.57 billion were 16 per cent higher than the prior year.
Direct expenses include prizes paid for fixed odds wagering games, as they are included in gaming income. Total gross ticket sales for the quarter amounted to $14.2 billion, representing an increase of 26 per cent over the corresponding period in 2018. The management told shareholders that the third quarter of 2019 has largely been a positive one for the company.
OUTLOOK FOR 2020
The management, in its report, project that 2020 will be a positive one for the regional gaming company.
“We expect that the economic conditions will remain favourable over the next two quarters, driving demand for entertainment and by extension a healthy demand for our products,” reports.
Supreme Ventures says it looks forward to the 2020 financial year, as strategic investments made in 2019 will enable us to further leverage the opportunities available to grow from strength to strength”.