April 22, 2021

Supreme Ventures Limited (SVL), for the three months period, reported a 6% increase in Total Gaming Revenue from $10.13 billion in 2020 to $10.71 billion in 2021.

Revenues from the company’s segments were as follows:

• Revenue from Non fixed odd wagering games, horse racing and pin codes- $6.69 billion (2020: $5.72 billion), a 17% increase.
• Income from fixed odd wagering games, net of prizes- $4.02 billion (2020: $4.41 billion), a 9% decrease.

Direct expenses recorded an increase to close the period under review at $8.69 billion when compared to $7.83 billion for the same period in 2020. As such, gross profit for the period fell 12% to $2.02 billion (2020: $2.30 billion). Management noted “this was a truly historic quarter for the Group’s operations as against the backdrop of a full twelve months of lagging COVID-19 economic impact, as well as the introduction of new Lottery entrants to the market, we were able to protect and grow our customer base and record the highest revenues in the company’s history.”

Selling, general and administrative expenses grew by 2% for the period to $1.32 billion (2020: $1.30 billion), while SVL booked other income of $55.06 million relative to other income of $64.29 million in the prior comparable period.

Consequently, operating profit for the period fell 29% to $752.71 million relative to $1.06 billion reported in same period last year.

Finance income amounted to $11.63 million relative to the finance cost of $54.04 million reported in the corresponding period in 2020. Profit before taxation amounted to $764.35 million, down from $1.01 billion recorded in the previous comparable period.

Taxation for the year fell by 40% to close at $162.64 million when compared to $272.02 million incurred in 2020. As such, net profit after tax for the three months period amounted to $601.70 million, an 18% decrease from the $736.79 million recorded for the prior corresponding period.

Net profit attributable to shareholders amounted to $592.26 million (2020: $738.37 million).

Earnings per share totaled $0.22 for the period under review (2020: $0.28). The twelve months trailing earnings per share amounted $0.85. The number of shares used in our calculations 2,637,254,926 units. Notably, SVL’s stock price closed the trading period on April 22, 2021 at a price of $16.00, with a corresponding P/E ratio of 18.91 times.

In addition, SVL stated that, “this expected reduction in profitability for the three-month period, is a result of several external factors including Government imposed restrictions to contain the spread of COVID-19, higher lottery liabilities during the quarter as compared to Q1 2020, and the introduction of competition.” Furterhmore “ the Group continues to focus on expanding channel strategies and terminal expansion, which have been received by the marketplace.”

Balance Sheet at a glance:

As at March 31,2021, Supreme Ventures Limited total assets base amounted to $14.90 billion relative to $10.22 billion a year earlier, a 46% increase. The increase was due mainly to increases in ‘Goodwill and ‘Cash and bank balances’ which closed at $3.65 billion (2020: $1.08 billion) and $4.97 billion (2020:$3.58 billion), respectively.

Shareholders’ equity amounted to $4.03 billion (2020: $3.91 billion), resulting in a book value per share of $1.53 (2020: $1.48).

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