Supreme Ventures is reporting a 135.66% increase in Sports Betting revenue over the corresponding period last year as they present their financial results for the nine months 1st January 2011 to 30th September 2011. This huge increase in Sport Betting revenue stands in stark contrast to 7.66% increase in prizes paid for Lottery and Sports Betting over the corresponding period last year.
Additionally, Lottery revenue did not increase as much, gaining only increasing 8.66% over the corresponding period last year.
The company continues on a path for improved profitability in 2011. As such, the management team continues to be focused on initiatives that will improve the efficiency of the Group’s corporate structure and operations, and reduce operating costs. They also report that in the upcoming fourth quarter of this year they hope to continue the upgrading of the VLT network and online monitoring at the gaming lounges. Identification of additional games and game themes for the gaming lounge floors is far advanced.
They report however that they are still limited in their ability to widen their sports betting locations as “The thrust to widen the distribution outlets for sports betting remains dependent on approval from the Betting, Gaming and Lotteries Commission (BGLC) for prospected locations.” The third quarter saw the installation of 15 new sports betting outlets. The company has over 1,020 actively selling terminals.
Increased Cash Pot payout reducing profit
Interestingly they report that the Cash Pot game model is designed for 72.22% prize liability. However, the average game liability for the third quarter (July to September) was above the game design at 74.79%, which resulted in increased prize liabilities for the third quarter, and has had an adverse effect on profitability by approximately $84M. The annualized average for Cash Pot liabilities at the end of the nine month period was 73.19%.
Here are some other financial highlights for the nine month financial period:
- 16.68% increase in total assets over the corresponding period last year
- 17.22% increase in Shareholders’ equity over the corresponding period last year
- 55.37% increase in profit from operations over the corresponding period last year
- 8.66% increase in Lottery revenue over the corresponding period last year
- 12.62% increase in MoneyGram revenue over the corresponding period last year
- 13.84% increase in cellular phone PIN Code revenue over the corresponding period last year
- 3.63% increase in contributions to the CHASE Fund over the corresponding period last year
- 8.68% increase in Agent Commission paid over the corresponding period last year
- 12.93% decrease in Service Contractor fees compared to the corresponding period last year