July 20, 2023

Supreme Ventures Limited (SVL), for the six months ended June 30, 2023, reported a 4% decrease in Total Gaming Income from $31.18 billion in 2022 to $29.99 billion in 2023. Revenues from the Company’s segments for the six months were as follows:

Revenue from non-fixed odd wagering games, horse racing and pin codes increased 1% to $17.91 billion (2022: $17.78 billion).

Income from fixed odd wagering games, net of prizes decreased 10% to $12.08 billion (2022: $13.40 billion).

Direct Expenses for the period decreased 8% to $23.78 billion (2022: $25.92 billion). For the quarter, Direct Expenses decreased 17% to $11.53 billion (2022: $13.89 billion). “This was attributable to lower prize winnings of $1.45 billion or 25%.”

Gross Profit for the six months ended June 30, 2023 increased 20% to $6.31 billion (2022: $5.28 billion). For the quarter, Gross Profit increased 40% to $3.43 billion (2022: $2.45 billion).

Selling, general and administrative expenses for the six months ended June 30, 2023 increased 22% to $3.88 billion (2022: $3.18 billion). For the quarter, Selling, general and administrative expenses increased 29% to $2.01 billion (2022: $1.55 billion).

Other Income for the six months increased 42% to $174.43 million (2022: $123.18 million). For the quarter, Other Income increased 631% to $115.79 million (2022: $15.85 million).

Operating Profit for the six months ended June 30, 2023 increased 17% to $2.61 billion (2022: $2.22 billion). For the quarter, Operating Profit increased 69% to $1.54 billion (2022: $906.26 million).

Finance Costs for the six months increased 70% to $306.24 million (2022: $180.18 million). For the quarter, Finance Costs increased 25% to $161.75 million (2022: $150.83 million).

Profit before taxation for the six months increased 13% to $2.30 billion (2022: $2.04 billion). For the quarter, Profit before taxation increased 77% to $1.37 billion (2022: $776.96 million).

Taxation for the six months increased 41% to $580.01 million (2022: $411.36 million). For the quarter, Taxation increased 144% to $367.91 million (2022: $150.83 million).

Net profit for the period amounted to $1.72 billion (2022: $1.63 billion). While, for the quarter, net profit closed at $1.01 billion (2022: $626.12 million).

Profit Attributable to shareholders for the six months increased 5% to $1.70 billion (2022: $1.62 billion). For the quarter, Profit Attributable to shareholders increased 60% to $995.31 million (2022: $621.96 million).

Consequently, Earnings Per Share for the six months amounted to $0.64 (2022: EPS: $0.61), while Earnings Per Share for the quarter totaled $0.38 (2022: EPS: $0.24). The twelve month trailing EPS was $1.18 and the number of shares used in these calculations was 2,637,254,926. Notably, SVL’s stock price closed the trading period on July 20, 2023 at a price of $26.83 with a corresponding P/E ratio of 22.70x.

Balance Sheet Highlights

The company’s assets totalled $17.78 billion (2022: $18.33 billion).

Shareholder’s equity was $4.85 billion (2022: $4.27 billion), representing a book value per share of $1.84 (2022: $1.62).

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