Date: March 02, 2020
Supreme Ventures Limited (SVL), for the year ended December 31, 2019, reported a 17% increase in ‘Total Gaming Revenue’ from $32.94 billion in 2018 to $38.52 billion in 2019. While, for the quarter, ‘Total Gaming Revenue’ closed at $6.59 billion (2018: $5.05 billion). According to SVL, “Lotteries and PINs segments continued to deliver results above expectations based on the strategic initiatives implemented during the year earning $3.52 billion, an increased 17.46% over prior year. The sports betting segment (excluding AnyBet), achieved gross ticket sales of $1.31 billion and segment results of 18 million, a significant achievement in a post-World Cup year. The Horseracing segment recorded increased revenues of 14%, an improvement of $846.59 million over prior year. The segment closed the year with a loss of $214.21 million representing an improvement over prior year of 15%.”
In addition, SVL noted that, “during the year, SVL acquired Post to Post Betting Limited (trading as Anybet) which contributed $39.36 million for the first six months of operations.”
Revenues from the Company’s segments were as follows:
Revenue from ‘Non fixed odd wagering games, horse racing and pin codes’ amounted to $23.29 billion (2018: $19.48 billion), a 20% increase.
Income from fixed odd wagering games, net of prizes totaled $15.23 billion (2018: $13.45 billion), a 13% rise.
Direct expenses recorded an increase to close the period at $30.61 billion when compared to $26.44 billion for the same period in 2018. As such, gross profit for the period improved 22% to $7.90 billion (2018: $6.49 billion). For the quarter, gross profit amounted to $2.15 billion (2018: $1.68 billion).
Selling, general and administrative expenses grew 15% for the period to $4.44 billion (2018: $3.84 billion), while recording ‘Other income’ of $174.11 million relative to $224.05 million for the prior period in 2018.
Net impairment losses on intangible assets closed at $41.43 million (2018: nil). Consequently, operating profit for the period increase 25% to $3.60 billion relative to $2.87 billion reported in 2018. Operating profit for the quarter totaled $1.01 billion (2018: $762.77 million).
Finance costs rose to $145.80 million (2018: $56.03 million). The Company also recorded revaluation gain on investment property of $9.45 million (2018: $72.50 million). As such, profit before taxation amounted to $3.46 billion, up from $2.89 billion in 2018. While, for the quarter, profit before taxation closed at $956.92 million (2018: $836.71 million).
Taxation for the year rose 25% to close at $988.08 million compared to $790.03 million in 2018, thus resulting in net profit of $2.47 billion, an 18% increase from the $2.10 billion recorded in the prior comparable period. For the quarter, net profit closed at $711.06 million (2018: $578.71 million).
Net profit attributable to shareholders amounted to $2.44 billion versus $2.10 billion booked in the prior corresponding period. For the quarter, net profit attributable to shareholders totaled $692.99 million (2018: $578.71 million).
Earnings per share totaled $0.93 versus $0.80 in the previous period in 2018. While, for the quarter, earnings per share closed at $0.26 (2018: $0.22). The number of shares used in our calculations 2,637,254,926 units. Notably, SVL’s stock price closed the trading period on February 28, 2020 at a price of $21.55.
Management noted, “in January 2019, we officially launched our Guyana operations with a grand opening and spent the 2019 period focusing on infrastructure buildout through new partnerships, and the roll out of new products. The buildout of the agent network is ongoing in 2020 and will provide a platform for the accelerated growth of the business in tandem with the expected economic growth in the country.” “Supreme’s mobile offering for lotteries, sports betting and horseracing continues to be seen as an area of opportunity to enhance the customer experience and the ease of doing business. The company also worked closely with our retail network for a significant part of the year to support their completion of the compliance process for the new due diligence requirements for lottery agents introduced by the BGLC in 2019. We were successful in having a significant majority of our Retailer base deemed compliant.”
Balance Sheet at a glance:
As at December 31, 2019, Supreme Ventures Limited had assets totaling $9.42 billion relative to $6.62 billion a year earlier. The increase was due mainly to a 21% and 268% increase in ‘Cash and Cash Equivalents’ and ‘Goodwill’ which closed at $3.59 billion (2018: $2.98 billion) and $1.09 billion (2018: $297 million), respectively. Also, ‘Property, Plant & Equipment’ and ‘Trade & Other Receivables’ also contributed to the growth closing at $1.83 billion (2018: $1.24 billion) and $1.64 billion (2018: $805.33 million), respectively.
Shareholders Equity amounted to $3.70 billion (2018: $3.29 billion) with a book value per share of $1.40 (2018: $1.25).
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