SVL reports a 41% increase in Net profit for six month 2017

Supreme Ventures Limited (SVL) reported a 23.5% in revenues from $27.37 billion for the 2017 period, up from $22.15 billion in 2016. While for the second quarter revenues totaled $13.98 million relative to $10.96 million in 2016.

Revenues from the company’s segments were as follows:

  • Lottery – $20.22 billion (2016:$17.41 billion), a 16.1% increase. According to SVL “the improvement in the lottery segment was due mainly to increased segment revenue gross profits, impacted by higher prize payouts particularly in the cash pot game.”
  • Sports Betting – $317.62 million (2016:$393.46 million) a 19.3% decline. The company highlighted that this “results for sports betting segment continue to improve with resizing the product being one of the strategic imperatives for 2017. The company also added, “segment losses have decreased from $112.597 million to $33.90 million.”
  • Gaming & Hospitality – $193.61 million (2016:$186.01 million) a 4.1% increase. According to SVL, “investments made to the VLT segment in December 2015, continue to positively impact the business as the segment has moved from break-even position in the prior year to an improved segment result of $14.86 million for first six months of 2017.”
  • Pin codes – $4.87 billion (2016: $4.11 billion), an 18.4% increase. Others – $3.88 million (2016: $41.99 million) a 90.8% decline. Unallocated – $7.66 million (2016: Nil).

Direct expenses recorded an increase to close the period at $24.63 billion when compared to $19.86 billion for the same period of 2016. As such, gross profit for the period improved 19.4% to $2.74 billion (2016: $2.29 billion).

Operating expenses grew by 7.3% for the period to $1.52 billion (2016: $1.41 billion).  Despite the increase, profit from operations rose year over year to total $1.22 billion in contrast to the $879.15 million recorded last year, a 38.7% increase.

Interest income grew 25.1% to $42.07 million (2016: $33.64 million) while finance costs totaled $19.64 million (2016: $331,000).

A net foreign exchange loss of $877,000 was recorded for the period relative to a gain of $4.87 million in 2016. SVL also reported nil for ‘Other gains’ during the period compared to $522,000 in 2016. Profit before Taxation amounted to $1.24 billion, up from $917.85 million in 2016.

Net Profit after tax amounted to $917.83 million, a 41.4% increase from the $649.07 million recorded in the first six months of 2016. This despite the increase in tax charges of $323.43 million relative to $268.78 million for the same period last year. While net profit for the quarter was $501.92 million relative to $373.72 million in 2015.

Earnings per share totaled $0.35 (2016: $0.25) for the six months, while earnings per share for the quarter amounted to $0.19 relative to a earning per share of $0.14 in 2016. The twelve month trailing EPS amounted to $0.55. The number of shares used in our calculations 2,637,254,926 units.

Balance Sheet at a glance:

As at June 30, 2017, Supreme Ventures Limited had assets totaling $6.50 billion relative to $5.22 billion a year prior.

Shareholders Equity amounted to $4.11 billion (2016: $3.74 billion) with a book value per share of $1.56 (2016: $1.42).





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