Date: July 26, 2018

Supreme Ventures Limited (SVL), for the six months ended June 30, 2018 reported a 13% increase in revenues for the period to total $30.95 billion, up from $27.37 billion in 2017. For the second quarter, revenues totaled $15.66 million relative to $13.98 million in 2017.

Revenues from the company’s segments were as follows:

Lottery – $22.13 billion (2017: $20.22 billion), a 9% increase. According to SVL, “successful deployment of marketing and retail initiatives, the Cash Pot, Money Time and Pick 4 games, continue to increase in popularity and sales.

Sports Betting – $544.90 million (2017: $317.62 million), a 72% increase. The company highlighted that ‘The launch of JustBet Goal Rush campaign in Q2 provided further momentum in increasing customer awareness and promoting the brand. Also, positive trends in sales were noted as a result of the World Cup tournament.”

Gaming & Hospitality – $170.49 million (2017: $ 193.61 million) a 12% decline.

Pin codes – $4.81 billion (2017: $4.87 billion), an 1% decrease.

Others soared to $178.17 million (2017: $3.88 million) whilst unallocated – $55.65 million (2016: $7.66 million).

Direct expenses recorded an increase to close the period at $27.68 billion when compared to $24.63 billion for the same period of 2017. As such, gross profit for the period improved 19% to $3.26 billion (2017: $2.74 billion).

Operating expenses grew by 22% for the period to $1.86 billion (2017: $1.52 billion). This translated into profit from operations of $1.41 billion in contrast to the $1.22 million recorded last year, a 15% increase.

In addition, Interest income fell 10% to $37.65 million (2017: $42.07 million) while finance costs totaled $34.88 million (2017: $19.64 million). The company highlighted that “the primary component of finance costs comprised interest charges relating to the funding of the acquisition and development of the Caymanas Park operations, which includes a finance lease arrangement.

A net foreign exchange loss of $9.14 million was recorded for the period relative to a loss of $877,000 million in 2017. Thus, Profit before Taxation amounted to $1.40 billion, up from $1.24 million in 2017.

Net Profit after tax amounted to $1.05 billion, a 14% increase from the $917.83 million recorded in the first six months of 2017 with tax charges of $349 million (2017: $323.43 million). While net profit for the second quarter was $432.42 million relative to $501.92 million in 2017. SVL noted, “this was attributable to game behavior and design and the fluctuation which sometimes arises from the predictability of the payout ratios of the games offered, particularly Cash Pot”.

Earnings per share totaled $0.40 (2016: $0.35) for the six months, while earnings per share for the quarter amounted to $0.16 relative to a earning per share of $0.19 in 2017. The twelve-month trailing EPS amounted to $0.50. The number of shares used in our calculations 2,637,254,926 units. SVL last traded on July 25, 2018 at $15.14.

Balance Sheet at a glance:

As at June 30, 2018, Supreme Ventures Limited had assets totaling $5.99 billion relative to $6.50 billion a year prior. This decline was attributed to ‘Goodwill’ and ‘Long-term receivables’ which closed the period at $302.40 million (2017: $647.67 million) and $29.22 million (2017: $473.70 million) respectively.

Shareholders Equity amounted to $2.85 billion (2017: $4.11 billion) with a book value per share of $1.08 (2017: $1.56).

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