April 21, 2022
Supreme Ventures Limited (SVL), for the three months period, reported a 19% increase in Total Gaming Revenue from $10.71 billion in 2021 to $12.72 billion in 2022. Revenues from the SVL’s segments were as follows:
- Revenue from Non fixed odd wagering games, horse racing and pin codes $7.22 billion (2021: $6.69 billion), an 8% increase year over year.
- Income from fixed odd wagering games, net of prizes $5.49 billion (2021: $4.02 billion), a 37% increase year over year.
Total gross ticket sales for the quarter amounted to $27.7 billion, representing an increase of 164.0 percent over the corresponding period in 2021, as customers welcomed new initiatives that positively impacted their pockets during a difficult economic downturn. Furthermore, The Lotteries segment reported gaming income of $6.0 billion and achieved results of $1.2 billion. This represents an increase of $1.4 billion, or 31%, on gaming income while segment results showed an increase of $517.6 million, or 82.2%.
The Sports Betting segment reported results of $287.2 million and gaming income of $3.5 billion, an increase of $490.0 million, or 16.6%, when compared to the prior year’s gaming income. The growth is due significantly to the attractiveness of the offers and flexibility and access to game, enhanced by the use of the mobile platforms.
PIN codes sales saw an increase of $115.5 million or 3.9 percent for the quarter, achieving segment results of $84.9 million. The partnerships with our main distributors will continue as we focus on maximizing the touch points and convenience for the end consumers. We continue to be excited about the rollout of “ChargeUp” and the extended relationships being offered to our retailers.
Direct expenses recorded a 13% increase to close the period under review at $9.84 billion when compared to $8.69 billion for the same period in 2021. Notwithstanding, gross profit for the quarter grew by 43% to $2.88 billion (2021: $2.02 billion). Management noted “The performance for the Quarter is a remarkable and historic achievement for the Groups’ operations despite the looming residual effects of the Covid-19 pandemic. SVG has been able to protect and grow its market share and record the highest revenues in the company’s history, notwithstanding the presence of Lottery competitors in the market.” Additionally, “This huge uplift in profitability for the three-month period, is a result of several factors including the hugely successful re-introduction of the popular Instants “Scratchaz” game and our successful implementation of significant cost-savings initiatives.”
Selling, general and administrative expenses grew by 24% for the quarter to $1.63 billion (2021: $1.32 billion), while SVL booked other income of $114.04 million relative to other income of $55.06 million in the prior comparable period.
Consequently, operating profit for the period rose 81% to $1.36 billion relative to $752.71 million reported in same period last year.
Finance cost amounted to $98.67 million relative to the finance income of $11.63 million reported in the corresponding period in 2021. Profit before taxation amounted to $1.26 billion, up 65% from $764.35 million recorded in the previous comparable period.
Taxation for the quarter rose 60% to close at $260.52 million when compared to $162.64 million incurred in 2021. As such, net profit after tax for the three months period amounted to $1 billion, a 67% increase from the $601.70 million recorded for the prior corresponding period.
Net profit attributable to shareholders amounted to $996.73 million (2021: $592.26 million).
Earnings per share totaled $0.38 for the period under review (2021: $0.22). The twelve months trailing earnings per share amounted $1.02. The number of shares used in our calculations 2,637,254,926 units. Notably, SVL’s stock price closed the trading period on April 21, 2022 at a price of $25.70, with a corresponding P/E ratio of 25.15 times.
In addition, SVL stated that,“The Group continues to focus on enhancing channel strategies and terminal expansion, which have been well received by the marketplace. SV Games (Mobile/Online) has seen exponential growth in both usage and growing the number of active online users due to the increased number of games that can be played on the platform, as well as strong promotional and product enhancement activities. The Supa Sellaz program has provided an additional sales channel for both our customers and our 3rd party retailers and continues to be successful.” SVL added, “New products will be launched through the retail channel as we continue to expand this critical component, a big part of the future of SVG. As we continue to roll out our channel diversification strategy, our customers will have new options to game at their fingertips.”
Balance Sheet at a glance:
As at March 31,2022, Supreme Ventures Limited total assets base amounted to $18.19 billion relative to $14.90 billion a year earlier, a 22% increase year-on-year. The increase was due mainly to increases in ‘Property, plant and equipment’ and ‘Trade and other receivables’ which closed at $4.76 billion (2021: $3.06 billion) and $3.58 billion (2021:$1.88 billion), respectively.
Shareholders’ equity amounted to $4.55 billion (2021: $4.03 billion), resulting in a book value per share of $1.72 (2021: $1.53).