July 22, 2021

Supreme Ventures Limited (SVL), for the six months ended June 30, 2021, reported a 23% increase in ‘Total Gaming Revenue’ from $17.54 billion in 2020 to $21.56 billion in 2021. For the quarter, ‘Total Gaming Revenue’ closed at $10.85 billion (2020: $7.42 billion).

Revenues from the Company’s segments were as follows:

• Revenue from ‘Non fixed odd wagering games, horse racing and pin codes’ amounted to $12.95 billion (2020: $9.70 billion), a 34% increase.
• Income from fixed odd wagering games, net of prizes totaled $8.61 billion (2020: $7.85 billion), a 10% rise year over year.

SVL mentioned that “ Total gaming income performance was driven largely by the significant growth in Cash Pot and Sports Betting.”

Direct expenses recorded an increase to close the period at $17.18 billion when compared to $13.74 billion for the same period in 2020. Nonetheless, gross profit for the period rose 15% to $4.37 billion (2020: $3.80 billion). For the quarter, gross profit closed at $2.36 billion (2020: $1.51 billion). Management noted that, “This significant increase is due to the partial closure of operations in Q2 2020 based on the restrictive measures. Additionally, the impact of the higher amounts paid to our key partners and Regulators during the quarter has affected the gross profit.”

Operating expenses grew 21% for the period to $2.87 billion (2020: $2.38 billion), while recording ‘Other income’ of $73.39 million relative to $64.18 million for the prior period in 2020. For the quarter, operating expenses amounted to $1.55 billion versus $1.08 billion booked in the previous year’s comparable quarter.

Operating profit for the period rose 6% to $1.58 billion relative to $1.49 billion reported in 2020. While, for the quarter, operating profit closed at $823.01 million (2020: $427.09 million).

Finance income ended at $82.01 million relative to finance cost of $81.22 million reported twelve months ealier. As such, profit before taxation amounted to $1.72 billion, up from $1.41 billion in 2020. For the quarter, profit before taxation totaled $951.28 million (2020: $399.91 million).

Taxation for the period rose 2% to close at $487.27 million compared to $479.76 million in 2020, thus resulting in net profit of $1.23 billion, a 32% increase from the $928.96 million recorded in the prior comparable period. For the quarter, net profit closed at $626.66 million (2020: $192.17 million).

Earnings per share totaled $0.46 versus $0.36 in the previous comparable period in 2020, while EPS for the quarter amounted to $0.23 (2020: $0.08). The twelve months trailing earnings per share amounted $1.00.  The number of shares used in our calculations 2,637,254,926 units. Notably, SVL’s stock price closed the trading period on July 22, 2021, at a price of $19.22 with a corresponding P/E ratio of 19.19 times.

The Group stated that, “New products will be launched through the retail channel as we continue to provide opportunities to grow for our retail partners, a critical part of the future of SVG.”

Balance Sheet at a glance:

As at June 30, 2021, Supreme Ventures Limited had assets totaling $15.48 billion relative to $10.98 billion a year earlier. The increase was due mainly to an increase in ‘Property, Plant and Equipment’ and ‘Cash and bank balances’ which closed at $4.11 billion (2020: $2.37 billion) and $4.13 billion (2020: $2.46 billion), respectively.

Shareholders Equity attributable to owners of SVL amounted to $4.12 billion (2020: $3.45 billion) with a book value per share of $1.56 (2020: $1.31).

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