SVL reports a 50% increase in year end net profit

February 28, 2019,

Supreme Ventures Limited (SVL) for the year ended December 31, 2018, reported a 11% increase in Total Gaming Revenue from $29.68 billion in 2017 to $32.94 billion in 2018. Management noted the, “When compared to 2017, the Group achieved record Gross Ticket Sales of approximately $62 billion in 2018, representing a 12.3% increase.” Revenues from the company’s segments were as follows:

  • Lottery – $2.78 billion (2017: $2.62 billion), a 6% increase.
  • Horseracing – $6.12 billion (2017: $4.66 million) a 31% increase.
  • VTL Gaming – $353.93 million (2017: $363.08 million) a decline of 3%.
  • Pin codes – $9.88 billion (2017: $9.86 billion), a marginal increase of 0.3%.
  • Other – $344.87 million (2017:$256.61 million), a 34% increase

Direct expenses recorded an increase to close the year at $26.44 billion when compared to $24.07 billion for the same period in 2017. As such, gross profit for the year improved 16% to $6.49 billion (2017: $5.61 billion).

Operating expenses grew by 12% for the period to $3.84 billion (2017: $3.42 billion) while other income declined 6% to $244.05 million (2017: $237.66 million)

The Company also booked no net impairment losses on intangible assets relative to a loss of $318.11 million 2017. Consequently, operating profit for the period increased 37% to $2.87 billion relative to $2.10 billion reported in 2017.

Finance costs declined 8% for the period to total $56.03 million (2017: $60.86 million). The company also recorded revaluation gain in investment property of $72.50 million relative to $4.73 million in 2017. As such, Profit before Taxation amounted to $2.89 billion, up from $2.05 billion in 2017.

Taxation for the year rose 22% to close at $790.03 million in compared to $647.71 million in 2017. Net Profit after tax amounted to $2.10 billion, a 50% increase from the $1.40 billion recorded for the prior financial year.

Earnings per share totaled $0.80 for the year (2017: $0.53). 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, 2019 at a price of $20.23.

Management noted“Total Comprehensive Income of approximately $2.1 billion, reflects our drive, focus and execution of core strategic initiatives such as our channel expansion into the mobile gaming arena and the kick-off of our regional expansion plans.”

Balance Sheet at a glance:

As at December 31, 2018, Supreme Ventures Limited had assets totaling $6.62 billion relative to $6.38 billion a year earlier. The increase was due mainly to a 22% and 6% increase in ‘Cash and Bank Balances’ and ‘Property, plant and equipment’. ‘Cash and Bank Balances’ and ‘Property, plant and equipment’ closed the year at $2.98 billion (2017: $2.44 billion) and $1.24 billion (2017: $1.16 billion)

Shareholders Equity amounted to $3.29 billion (2017: $3.32 billion) with a book value per share of $1.25 (2017: $1.26).

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