March 2, 2024

Supreme Ventures Limited (SVL), for the twelve months ended December 31, 2023, reported a 2% decrease in Total Gaming Income from $50.77 billion in 2022 to $49.90 billion in 2023. Revenues from the Company’s segments for the twelve months were as follows:

• Revenue from non-fixed odd wagering games, horse racing and pin codes increased 2% to $30.01 billion (2022: $29.47 billion).
• Income from fixed odd wagering games, net of prizes decreased 7% to $19.90 billion (2022: $21.30 billion).

Direct Expenses for the period decreased 4% to $38.10 billion (2022: $39.60 billion). For the quarter, Direct Expenses decreased 27% to $7.05 billion (2022: $9.64 billion).

Gross Profit for the twelve months ended December 31, 2023, increased 7% to $12.00 billion (2022: $11.27 billion). For the quarter, Gross Profit decreased 18% to $3.00 billion (2022: $3.68 billion).

Selling, general and administrative expenses for the twelve months ended December 31, 2023, increased 21% to $8.44 billion (2022: $6.98 billion). For the quarter, Selling, general and administrative expenses increased 19% to $2.46 billion (2022: $2.07 billion).

Other Income for the twelve months increased 191% to $696.15 million (2022: $239.30 million). For the quarter, Other Income increased 794% to $320.95 million (2022: $35.92 million).

Operating Profit for the twelve months ended December 31, 2023, decreased 12% to $3.88 billion (2022: $4.39 billion). For the quarter, Operating Profit decreased 73% to $400.01 million (2022: $1.50 billion).

Finance Costs for the twelve months increased 14% to $609.35 million (2022: $535.20 million). For the quarter, Finance Costs decreased 62% to $113.68 million (2022: $301.22 million).

Profit before taxation for the twelve months decreased 15% to $3.27 billion (2022: $3.86 billion). For the quarter, Profit before taxation decreased 69% to $370.33 million (2022: $1.21 billion).

Taxation for the twelve months increased 6% to $830.08 million (2022: $781.34 million). For the quarter, Taxation decreased 80% to $38.58 million (2022: $188.21 million).

Profit Attributable to shareholders for the twelve months decreased 20% to $2.42 billion (2022: $3.04 billion). For the quarter, Profit Attributable to shareholders decreased 65% to $350.54 million (2022: $998.50 million).

Consequently, Earnings Per Share for the twelve months amounted to $0.92 (2022: EPS: $1.15), while Earnings Per Share for the quarter totalled $0.13 (2022: EPS: $0.38). The number of shares used in these calculations was 2,637,254,926.

Notably, SVL’s stock price closed the trading period on March 28, 2024, at a price of $24.74 with a corresponding P/E ratio of 26.96x.

Balance Sheet Highlights

The company’s assets totalled $20.87 billion (2022: $18.37 billion). The growth in total assets was primarily driven by an uptick in ‘Financial assets at fair value’ by $1.16 billion to close at $1.66 billion (2022: $501.40 million). ‘Property, plant & equipment’ also had a notable increase, up 15% from $4.86 billion in 2022 to $5.58 billion in 2023.

Shareholder’s equity was $4.26 billion (2022: $4.69 billion), representing a book value per share of $1.62 (2022: $1.78).

Disclaimer:

Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.