6 days ago
1
Supreme Ventures Limited, SVL, posted strong third-quarter results, but the gaming and lottery company remains cautious about the lingering effects of Hurricane Melissa, which disrupted operations in key parishes and threatens to dampen fourth-quarter momentum.
Over nine months ending September, profit for SVL Group increased by seven per cent to $1.84 billion, from $1.7 billion. Third-quarter profit climbed from $358 million to $543.7 million.
SVL Group Executive Chairman Gary Peart, in an interview following the release of the results, acknowledged the impact of Hurricane Melissa, which struck on October 28 and caused widespread disruption across five parishes, including Westmoreland and St Elizabeth.
“We had to close down the draw for two days,” Peart said. “It’s the first time since we’ve opened that we’ve actually had to shut down operations like that.”
The closure of gaming terminals and the slow restoration of utilities in affected areas have created operational bottlenecks.
“When we reopened on Thursday, October 30, only 20 per cent of the terminals came on,” Peart said. “The pace at which the terminals are coming up is pretty good, but it’s a function of when JPS brings power to certain areas,” he said.
SVL has deployed teams to assist retailers with generators and basic supplies, but the company’s recovery is not only tied to the restoration of services by power utility JPS, but also telecoms operators Flow and Digicel.
“We’re helping our employees, retailers, and their families, but it’s really about how quickly those services return,” Peart said.
Year to date, SVL has carved out more revenue than in the prior period, $41.8 billion compared to $39.1 billion. Revenues for the quarter surged 50 per cent year-on-year, a rebound from what Peart described as “a disastrous quarter” in 2024.
The company’s flagship lottery and gaming operations continue to be the primary revenue drivers, supported by digital transformation initiatives and expansion of its retail footprint. It’s also in the business of horse racing as operator of the track at Caymanas Park, and microlending.
Peart has been watching consumer behaviour in the wake of the hurricane.
“Even though I have 50 per cent of the machines back up, those machines are generating almost 70 per cent of sales relative to pre-Melissa,” he said. “What that is saying is that people in the affected areas have migrated to unaffected areas and are playing the games,” Peart opined.
This migration has led to increased activity in urban centres like Kingston and Portmore, where hotels are reportedly full and residents are hosting displaced family members.
“People aren’t just sitting down in the morass of St Elizabeth and Westmoreland. They’ve gotten up and moved,” the SVL chairman said.
Still, the company is tempering expectations for the fourth quarter, which runs from October to December. Peart estimates that without the hurricane, SVL might have posted between $700 million and $1 billion in profit for the quarter.
“Given Melissa, depending on how we come out of November, we could still surpass $2 billion for the full year,” he said.
That implies that SVL is expecting fourth-quarter profit to diminish to around $200 million.
Looking ahead, SVL is banking on the resilience of the Jamaican consumer and the seasonal uptick in gaming activity during the Christmas period to deliver positive returns.
“No matter what the situation is, I think we’re going to find a way to get out and about,” he said.
English (US) ·