Supreme Ventures Limited 11th Annual General Meeting

Review company performance since IPO

Back in 2001, according to the Chief Executive Officer (CEO) of SVL James Morrison, Supreme Ventures Limited (SVL) had revenue of $9.1 billion in 2001, 26 employees, 126 agents and 2 products. Looking back on the previous financial year the Group had  $44.9 billion in revenues,  204 employees, 902 agents and multiple products offerings. From 2006 to 2016 the assets of the company grew from $2.8 billion to $5.4 billion. “This was achieved through organic growth and three strategic acquisitions (Coral Cliff, Big A Track, Jamaica Lottery Company),” this was all done with an increase in ticket pricing as per James Morrison.

The company achieve the result in an economic environment where Jamaica’s GDP was growing at less than 5% over the period with annual inflation in excess of 10%. Notably, the dollar over that period  devalued by over 170%. The CEO highlighted that remittances have grown significantly over the period and has helped to drive SVL sales.

SVL operates in a very competitive market and is seeing increase competition in the Video Lottery Terminals (VLT) and Sports Betting segment. Mr Morrison also attributed the success of the company to the expertise of the management team. “The former CEO despite his passing had paved the way for the company’s continued success.”

Products

Mr Morrison noted, “that SVL has the most diverse lottery and gaming portfolio in the world, which has been pivotal in driving the company’s revenue. In order to continue to drive growth the company has decided to invest more in sports betting, virtual and live horseracing.”

Caymans Tracks Limited

Upon concluding the negotiations for Caymans Tracks Limited the company has set in motion its strategic plan to restructure Caymans Tracks.

 

The Strategic Plan

  • Revenue Enhancing – The CEO indicated revenues will be improved by developing the local horse racing product, “this has already borne fruit as revenue has already increase by 20% from 2015.” Mr Morrison stressed that, “this increase in revenue will have positive effects which will be felt by every stakeholder in horse racing; along with giving his commitment to increase the pay out for each race.  The number of race days for the calendar year is set to increase from 74 for 2016.” However, this increase is constrained by the number of horses available as per Mr Morrison. Coupled with  as increase in number of race days, SVL also plans to export its horse racing signal to the USA and UK which the company believes are untapped markets. Finally, company intends to fully integrate its horse racing betting platform with is current and extensive betting platform which the company hopes will boost revenues.

 

  • Facility upgrades – Mr Morrison noted that SVL has already started work on the facilities at Caymans. The company has begun to resurface the track, repaint the building, upgrade and refurbish the bathroom facilities and acquire high definition cameras to improve the simulcast video quality and aid in decision making on the winners of races.

 

Moving Forward

“The group now has a presence in all areas of the gaming industry; increased competition has forced us to consolidate our VLT gaming area. The company will switch focus from gaming growth to gaming yield. We are aware of another gaming licence which was issued and we are preparing ourselves to deal with that.” “In the short run we intend to enhance the games and increase our terminal expansion to completely fill out the entire space in Jamaica. We will streamline our sports betting segment for profitability and continue to introduce new games and incentive for our players”

 

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2017-06-10T17:05:15+00:00