Brian George promises record J$840m profit
Published:Sunday | June 26, 2011 | 12:00 AM
Sabrina Gordon, Business Reporter
Brian George, president and chief executive officer of gaming and lottery company Supreme Ventures Limited (SVL), is predicting record profit for the lottery company this year based on a plan to strangle costs while expanding services.
George told shareholders at SVL's annual general meeting (AGM) on Thursday that he expects to double profit from last year's J$421 million to J$840 million.
"This would be the highest year of profit this company has ever seen," he said. SVL has been around for a decade.
But it will be hard work, said George, who noted that the main strategy to get there will be a focus on expense management.
"The real focus has been on expense management because that is the one thing we can try to control as best as we can, but really also to keep expanding in the service business, making the video lottery business profitable, and continue to excite players in the lottery business with the introduction of Pick 4," he told the AGM.
Already for the first quarter of its financial year ended March 2011, the company has been able to lower direct expenses by 4.5 per cent over the corresponding period last year.
But George did not say which area of the company's expense budget was likely to see the most tightening.
Most of SVL's direct expenses, however, are associated with payouts on lottery and sports-betting prizes.
For the three months up to March, direct expenses totalled J$5.5 billion, of which lottery and sports-betting prizes accounted for J$3.6 billion.
US$25 million savings
George also told shareholders that the amendment to the GTECH agreement signed in April 2011 would result in projected savings of some US$25 million over the next five years.
The consolidation of Prime Sports offices has also saved the company on rental costs, he said.
But George's plan extends beyond frugality to new business development.
Come October, SVL hopes to launch another game, Pick 4, following on the shift in consumer spend from jackpot games to quick-return games, and complete the upgrading of its gaming lounges.
SVL plans to establish at least 150 sports- betting terminals, also by October, adding another 50 by the end of the year in line with the company's diversification plan from lottery and Cash Pot dependency.
The company is also looking at a new area of opportunity: commercial and government services.
"It's just speculative at this time, but we will make ourselves available under the right circum-stances to assist the Government in providing services to civil servants. We can't impose our wishes on the Government, but what we are saying is that the technology is there, and to the extent that we are able to make ourselves available and it is utilised, would be good," said George.
"The services could either be for the payment of fees and taxes, or for the receipt of benefits where we can use the distribution network that the lottery terminals offer."
He also listed benefits to pensioners, collection of government fees, and phonecard top- ups as examples of the services that could be offered.