July 21, 2022
Supreme Ventures Limited (SVL)
Financial Results for the Six Months Ended June 30, 2022:
Supreme Ventures Limited (SVL), for the six months ended June 30, 2022, reported an 18% increase in ‘Total Gaming Revenue’ from $21.56 billion in 2021 to $25.47 billion in 2022. For the quarter, ‘Total Gaming Revenue’ closed at $12.76 billion (2021: $10.85 billion).
Revenues from the Company’s segments were as follows:
Revenue from ‘Non fixed odd wagering games, horse racing and pin codes’ amounted to $14.52 billion (2021: $12.95 billion), a 12% increase year over yaer.
Income from fixed odd wagering games, net of prizes, totaled $10.95 billion (2021: $8.61 billion), a 27% rise year over year. SVL mentioned that “driven largely by lottery sales with strong performances from Cash Pot and Instants.”
Direct expenses recorded an increase to close the period at $20.20 billion when compared to $17.18 billion for the same period in 2021. Nonetheless, gross profit for the period rose 21% to $5.28 billion (2021: $4.37 billion). For the quarter, gross profit closed at $2.40 billion (2021: $2.36 billion). Management noted that, “This resulted from the higher amounts paid to our key partners and regulators during the quarter, as prize pay-outs trended higher for some games in comparison to prior year.”
Operating expenses grew 11% for the period to $3.18 billion (2021: $2.87 billion), while recording ‘Other income’ of $123.18 million relative to $131.29 million for the prior period in 2021. For the quarter, operating expenses amounted to $1.546 billion versus $1.551 billion booked in the previous year’s comparable quarter.
Operating profit for the period rose 5% to $2.22 billion relative to $1.63 billion reported in 2021. While, for the quarter, operating profit closed at $862.51 million (2021: $880.91 million).
Finance cost ended at $180.18 million relative to finance income of $82.01 million reported twelve months earlier. As such, profit before taxation amounted to $2.04 billion, up from $1.72 billion in 2021. For the quarter, profit before taxation totaled $781 million (2021: $951.28 million).
Taxation for the period fell 16% to close at $411.36 million compared to $487.27 million in 2021, thus resulting in net profit of $1.63 billion, a 33% increase from the $1.23 billion recorded in the prior comparable period. For the quarter, net profit closed at $630.17 million (2021: $626.66 million).
Net profit attributable to shareholders closed at $1.62 billion (2021: $1.21 billion). While, for the quarter, net profit attributable to shareholders amounted to $621.96 million (2021: $616.91 million).
Earnings per share totaled $0.61 versus $0.46 in the previous comparable period in 2020, while EPS for the quarter amounted to $0.24 (2021: $0.23). 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 July 21, 2022, at a price of $32 with a corresponding P/E ratio of 31.25 times.
The Group stated that, “The Group looks forward to the continuation of improvements, the launch of key initiatives and products through our retail channel, the continued drive to grow our mobile channels through increased penetration across our gaming segments, the continued build out of our business in Guyana and the improvement in the horse racing product through technological and new product initiatives. Our Lottery portfolio continues to be a primary focus while improving and strengthening our internal infrastructure and capabilities,”
Balance Sheet at a glance:
As at June 30, 2022, Supreme Ventures Limited had assets totaling $18.33 billion relative to $15.48 billion a year earlier. The increase was due mainly to an increase in ‘Property, Plant and Equipment’ and ‘Trades and Other Receivables’, which closed at $4.97 billion (2021: $4.11 billion) and $3.60 billion (2021: $2.13 billion), respectively.
Shareholders Equity attributable to owners of SVL amounted to $4.27 billion (2021: $4.12 billion) with a book value per share of $1.62 (2021: $1.56). 