July 25, 2024

Supreme Ventures Limited (SVL)

Unaudited financials for the six months ended June 30, 2024:

Supreme Ventures Limited (SVL), for the six months ended June 30, 2024, reported a 1% increase in Total Gaming Income from $25.63 billion in 2023 to $25.85 billion in 2024. Revenues from the Company’s segments for the six months were as follows:

• Revenue from non-fixed odd wagering games, horse racing and pin codes increased 3% to $15.58 billion (2023: $15.12 billion).
• Income from fixed odd wagering games, net of prizes decreased 2% to $10.27 billion (2023: $10.52 billion).

Direct Expenses for the period increased 2% to $19.57 billion (2023: $19.11 billion). For the quarter, Direct Expenses increased 4% to $9.45 billion (2023: $9.06 billion).

Gross Profit for the six months ended June 30, 2024, decreased 2% to $6.47 billion (2023: $6.62 billion). For the quarter, Gross Profit decreased 11% to $3.36 billion (2023: $3.78 billion).

Selling, general and administrative expenses for the six months ended June 30, 2024, increased 1% to $4.23 billion (2023: $4.18 billion). For the quarter, Selling, general and administrative expenses increased 10% to $2.55 billion (2023: $2.33 billion).

Other Income for the six months decreased 69% to $77.31 million (2023: $251.63 million). For the quarter, Other Income decreased 54% to $77.03 million (2023: $166.63 million).

Operating Profit for the six months ended June 30, 2024, decreased 14% to $2.32 billion (2023: $2.69 billion). For the quarter, Operating Profit decreased 45% to $888.34 million (2023: $1.62 billion).

Finance Costs for the six months increased 6% to $407.45 million (2023: $383.44 million). For the quarter, Finance Costs decreased 24% to $181.61 million (2023: $239.80 million).

Profit before taxation for the six months decreased 17% to $1.91 billion (2023: $2.30 billion). For the quarter, Profit before taxation decreased 49% to $706.73 million (2023: $1.38 billion).

Taxation for the six months decreased 3% to $565.45 million (2023: $580.01 million). For the quarter, Taxation decreased 37% to $231.45 million (2023: $367.91 million).

Net Profit Attributable to shareholders for the six months decreased 22% to $1.33 billion (2023: $1.70 billion). For the quarter, Net Profit Attributable to shareholders decreased 52% to $480.01 million (2023: $995.31 million).

Consequently, Earnings Per Share for the six months amounted to $0.50 (2023: EPS: $0.64), while Earnings Per Share for the quarter totaled $0.18 (2023: EPS: $0.38). The twelve-month trailing EPS was $0.78 and the number of shares used in these calculations was 2,637,254,926.

Notably, SVL’s stock price closed the trading period on July 24, 2024, at a price of $23.07 with a corresponding P/E ratio of 29.68x.

Balance Sheet Highlights

The company’s assets totalled $21.67 billion (2023: $17.78 billion). The growth in total assets was mainly influenced by upticks in ‘Trade and other receivables’, ‘Financial assets at fair value’, ‘Loan advances’, and ‘Property, plant & equipment’, by $1.06 billion, $965.70 million, $883.72 million, and $528.54 million, respectively.

Total shareholder’s equity was $4.51 billion (2023: $4.85 billion), representing a book value per share of $1.71 (2023: $1.84).

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