November 2, 2023
Supreme Ventures Limited (SVL), for the nine months ended September 30, 2023, reported a 6% increase in Total Gaming Income from $37.52 billion in 2022 to $39.90 billion in 2023. Revenues from the Company’s segments for the nine months were as follows:
Revenue from non-fixed odd wagering games, horse racing and pin codes increased 8% to $23.65 billion (2022: $21.89 billion).
Income from fixed odd wagering games, net of prizes increased 4% to $16.25 billion (2022: $15.63 billion).
Management noted that, “The Group recognized Gross revenues of $12.8 billion, an increase of $755 million or 6% over Q3 2022, facilitated by the introduction of world class and exciting new promotions such as the Supreme Haval, Monsta Ball, Money Time and Supa-Train. We are happy that our money train promotion was well received, which also contributed to the improved gross sales for the quarter.”
Direct Expenses for the period increased 4% to $31.06 billion (2022: $29.95 billion). For the quarter, Direct Expenses increased 4% to $10.18 billion (2022: $9.75 billion). Staffing expenses, international travel, marketing and business development, professional services, bad debt costs, and subscriptions and donations were the primary drivers. A significant portion of these costs were attributable to the expansion into new markets and the implementation of automation initiatives that propelled the Group’s digitization. To protect against an increase in trade accounts receivable, SVL have judiciously increased our provision for bad debts; nevertheless, the Group continues to prioritize collection efforts, and it is anticipated that recoveries will occur as the implemented measures continue to have an effect.
Gross Profit for the nine months ended September 30, 2023 increased 19% to $9.01 billion (2022: $7.59 billion). For the quarter, Gross Profit increased 17% to $2.69 billion (2022: $2.31 billion).
Selling, general and administrative expenses for the nine months ended September 30, 2023 increased 22% to $5.99 billion (2022: $4.91 billion). For the quarter, Selling, general and administrative expenses increased 21% to $2.09 billion (2022: $1.73 billion).
Other Income for the nine months increased 84% to $375.20 million (2022: $203.38 million). For the quarter, Other Income increased 248% to $200.78 million (2022: $57.70 million).
Operating Profit for the nine months ended September 30, 2023 increased 18% to $3.40 billion (2022: $2.89 billion). For the quarter, Operating Profit increased 25% to $801.71 million (2022: $639.08 million).
Finance Costs for the nine months increased 112% to $495.68 million (2022: $233.98 million). For the quarter, Finance Costs increased 505% to $189.44 million (2022: $31.31 million).
Profit before taxation for the nine months increased 9% to $2.90 billion (2022: $2.65 billion). For the quarter, Profit before taxation increased 1% to $612.27 million (2022: $607.78 million).
Taxation for the nine months increased 33% to $791.50 million (2022: $593.13 million). For the quarter, Taxation increased 12% to $204.17 million (2022: $181.77 million).
Profit Attributable to shareholders for the nine months increased 1% to $2.07 billion (2022: $2.04 billion). For the quarter, Profit Attributable to shareholders decreased 6% to $394.44 million (2022: $417.80 million).
Consequently, Earnings Per Share for the nine months amounted to $0.79 (2022: EPS: $0.77), while Earnings Per Share for the quarter totaled $0.15 (2022: EPS: $0.16). The twelve-month trailing EPS was $1.16 and the number of shares used in these calculations was 2,637,254,926.
Notably, SVL’s stock price closed the trading period on November 01, 2023 at a price of $25.80 with a corresponding P/E ratio of 22.17x.
Balance Sheet Highlights
The company’s assets totalled $20.59 billion (2022: $17.18 billion). The growth in total assets was primarily due to ‘Financial assets at fair value’ increasing 245% to close at $1.47 billion and ‘Cash and bank balances’ increasing 59% to close at $3.05 billion.
Shareholder’s equity was $5.27 billion (2022: $4.25 billion), representing a book value per share of $2.00 (2022: $1.61).
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