SVL reports a 56% increase in nine months net profit

Supreme Ventures Limited (SVL) for the nine months ended September 30, 2017 reported a 25% in revenues from $41.24 billion for the 2017 period, up from $33.06 billion in 2016. While for the third quarter revenues totaled $13.87 million relative to $10.90 million in 2016.

Revenues from the company’s segments were as follows:

  • Lottery – $29.75 billion (2016: $25.87 billion), a 15% increase. SVL noted, “stimulated by the successful deployment of marketing and retail initiatives, the Cash Pot and Pick 4 games, in particular, continue to benefit from increasing popularity amongst players. The Mega Ball feature, introduced in late March 2017, has been enjoying strong player demand and has contributed to the improved performance of the Cash Pot game.”
  • Sports Betting – $516.37 million (2016: $565.39 million) a 9% decline.
  • Gaming & Hospitality – $281.04 million (2016: $264.61 million) a 6% increase. The company highlighted that, “the VLT business is benefiting from continued renewal of gaming offerings and attractive player rewards, supported by more efficient lounge management. The re-sized Sports Betting business is performing ahead of its turn-around plan through more compelling bet offerings.”
  • Horseracing – $3.27 billion (2016: nil). The company noted, “the Group is encouraged by the early results of the strategic initiatives implemented at the  Caymanas Track operations. These include free entry to the park, increased purse size, earlier purse payments, facility upgrade, improved customer experience and greater attention to security of patrons. This has resulted in new and renewed interest within the industry, with a significant increase in applications for ownership of horses and heightened interest from sponsors.”
  • Pin codes – $7.40 billion (2016: $6.28 billion), an 18% increase.
  • Other revenue – $5.62 million (2016: $61.37 million) a 91% decline.
  • Unallocated – $13.54 million (2016: 10.88 million).

Direct expenses recorded an increase to close the period at $37.07 billion when compared to $29.89 billion for the same period of 2016. As such, gross profit for the period improved 32% to $4.17 billion (2016: $3.16 billion). Gross profit for the third quarter amounted to $1.43 billion, 63% higher versus $869.38 million booked for the corresponding quarter of 2016.

Operating expenses grew by 19% for the period to $2.42 billion (2016: $2.03 billion). Management noted, “the increase in the Group’s operating expenses was mainly impacted by the Caymanas operations. Operating expenses excluding the Caymanas operations, reduced by $168.50 million.” Despite the increase, profit from operations rose year over year to total $1.75 billion in contrast to the $1.13 billion recorded last year, a 54% increase.

Interest income grew 45% to $71.43 million (2016: $49.25 million), while finance costs totaled $45.49 million (2016: $354,000).

A net foreign exchange loss of $3.18 million was recorded for the period compared to a gain of $7.99 million booked in 2016. SVL reported $3.74 million for ‘Other gains’ during the period compared to $3.48 million in 2016. Profit before Taxation amounted to $1.77 billion, up from $1.19 million in 2016.

Net Profit after tax amounted to $1.33 billion, a 56% increase from the $849.70 million recorded for the nine months ended September 30, 2017. This despite the increase in tax charges of $445.58 million relative to $343.43 million for the same period last year. Net profit for the quarter totaled $409.22 million relative to $200.64 million in 2016.

Earnings per share totaled $0.50 (2016: $0.32) for the nine months, while earnings per share for the quarter amounted to $0.16 relative to a earning per share of $0.08 in 2016. The twelve month trailing EPS amounted to $0.63. The number of shares used in our calculations 2,637,254,926 units.


Balance Sheet at a glance:

As at September 30, 2017, Supreme Ventures Limited had assets totaling $7.01 billion relative to $5.15 billion a year prior. The increase was due mainly to an 85% increase in ‘cash and cash balances’ to $1.12 billion (2016: $1.31 billion). Property, plant and equipment also contributed to the over increase in SVL’s asset base which rose 91% to close at $1.36 billion relative to $710.70 million.

Shareholders Equity amounted to $4.10 billion (2016: $3.60 billion) with a book value per share of $1.55 (2016: $1.36).



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