Date: February 26, 2021
Supreme Ventures Limited (SVL), for the year ended December 31, 2020, reported a 2% increase in ‘Total Gaming Revenue’ from $38.52 billion in 2019 to $39.36 billion in 2020. While, for the quarter, ‘Total Gaming Revenue’ closed at $11.42 billion (2019: $10.46 billion). According to SVL, “Despite COVID-19 and resulting closures in the Sports Betting segment, all segments performed creditably in comparison to the previous financial year reflecting increases of 4.51%. Lotteries and PINs segments continued to deliver results above expectations based on the strategic initiatives implemented during the year earning $4.44 billion, an increase of 26.02% over prior year.”
In addition, SVL noted that, “during the year, SVL acquired the assets of Champion Gaming Limited amounting to $1.5 billion and continues to leverage our fixed distribution network by investing in new complimentary businesses and product lines. 2021 will see the advent of new financial services and related transactional product offerings which will further benefit the retail network and the main operations.”
Revenues from the Company’s segments were as follows:
Revenue from ‘Non fixed odd wagering games, horse racing and pin codes’ amounted to $22.85 billion (2019: $23.29 billion), a 2% decrease.
Income from fixed odd wagering games, net of prizes totaled $16.51 billion (2019: $15.23 billion), an 8% rise.
Direct expenses recorded a marginal decrease to close the period at $30.608 billion when compared to $30.614 billion for the same period in 2019. SVL noted that, “included in direct costs are contributions to Government agencies and related bodies of over $8.25 billion, a record increase of 5.23%, or $409.86 million over 2019. SVL continues to contribute substantially to the Government coffers at a rate many times more than our profitability.” As such, gross profit for the period improved 11% to $8.75 billion (2019: $7.90 billion). For the quarter, gross profit amounted to $2.76 billion (2019: $2.15 billion).
Selling, general and administrative expenses grew 12% for the period to $4.95 billion (2019: $4.44 billion), while recording ‘Other income’ of $126.67 million relative to $174.11 million for the prior period in 2019.
Net impairment losses on intangible assets closed at $22.06 million (2019: $41.43 million). Consequently, operating profit for the period increased 8% to $3.90 billion relative to $3.60 billion reported in 2019. Operating profit for the quarter totaled $1.47 billion (2019: $1.01 billion).
Finance costs rose to $269.87 million (2019: $145.80 million). The Company also recorded a revaluation loss on investment property of $34.95 million (2019: gain of $9.45 million). As such, profit before taxation amounted to $3.60 billion, up from $3.46 billion in 2019. While, for the quarter, profit before taxation closed at $1.32 billion (2019: $956.92 million).
Taxation for the year rose 19% to close at $1.17 billion compared to $988.08 million in 2019, thus resulting in net profit of $2.42 billion, a 2% decrease from the $2.47 billion recorded in the prior comparable period. For the quarter, net profit closed at $873.16 million (2019: $711.06 million).
Net profit attributable to shareholders amounted to $2.38 billion versus $2.44 billion booked in the prior corresponding period. For the quarter, net profit attributable to shareholders totaled $836.55 million (2019: $693 million).
Earnings per share totaled $0.90 versus $0.93 in the previous period in 2019. While, for the quarter, earnings per share closed at $0.32 (2019: $0.26). The number of shares used in our calculations 2,637,254,926 units. Notably, SVL’s stock price closed the trading period on February 25, 2021 at a price of $15.70 with a corresponding P/E of 17.42x.
Management noted, “While the onset of COVID–19 in March 2020 brought on new challenges and opportunities for our Group, the company focused on providing our customers with easier and more access points for our products. This focus led to new and innovative approaches to how we serve our customers and has positively impacted each interaction. We have become more agile in our ability to meet customer and stakeholder requirements and have improved communications within our retail network.”
Balance Sheet at a glance:
As at December 31, 2020, Supreme Ventures Limited had assets totaling $15.56 billion relative to $9.42 billion a year earlier. The increase was due mainly to a 74% and 239% increase in ‘Cash and Cash Equivalents’ and ‘Goodwill’ which closed at $6.26 billion (2019: $3.59 billion) and $3.70 billion (2019: $1.09 billion), respectively. Also, ‘Property, Plant & Equipment’ contributed to the growth closing at $2.84 billion (2019: $1.83 billion).
Shareholders Equity amounted to $4.20 billion (2019: $3.70 billion) with a book value per share of $1.59 (2019: $1.40).
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