Supreme Ventures take $150-million hit from Gustav

Published: Wednesday September 3, 2008

Gustav cost Supreme Ventures Ltd $150 million in lost sales, when it shut down its system for the storm's passage.

Over the period some Cash Pot gamblers were upset that they could not place weather-inspired bets with the closure.

"We brought down the system for precautionary measures," said Sonia Davidson, spokesperson for SVL."We lost three days of sales and it cost us about $150 million."

The loss was estimated to be higher than the impact of Hurricane Dean and what was described by SVL's CEO Brian George in the group's 2007 annual report as "prolonged election campaigning" which resulted in "an estimated loss of $150m potential revenue in the 3rd and 4th quarters of the (2007) financial year".

From Thursday to Saturday the company did not operate its games; waiting instead for the storm to pass. The company took the decision following damage to its network in 2004 with Hurricane Ivan.

Up to print 30 of its 900 agents were still not open. "They may be in inaccessible areas affected by road blocks or landslides. So we are anticipating some equipment loss based on flooding and damage to those agents."

But overall customer spend is still below pre-Gustav levels. "That's because after a storm some people have a change of priorities," she said, "whilst others will ask why weren't you open during the storm."

Regarding promotions to recapture the lost revenues, Davidson said: "We are running down to the final days of the financial year, and there really is not much we can do."

SVL earned $134 million in profit over three months ending April, which was 16.6 per cent less than the same period last year. But its year-to- date figure is up $349 million from $228.9 million last year due to improved operating profits.

Over the period the Cash Pot game posted prize liability of 71 per cent, one per cent better than the game model. Also there were no high Lotto Jackpots during the period under review.


Source: Jamaica Observer
http://www.jamaicaobserver.com/magazines/Business/html/20080902T220000-0500_139759_OBS_SUPREME_VENTURES_TAKE______MILLION_HIT_FROM_GUSTAV.asp