Supreme Ventures Limited’s board has disclosed earnings per share of 22.60 cents per unit for third quarter 2020. This compares to 19.44 cents in the similar period in 2019.
The board also declared a dividend of 20.00 cents per share payable on December 4, 2020.
Company performance has been improving, although remaining somewhat below results in 2019.
For the nine months ending September 30, Supreme Ventures reported net profit of $1.6 billion.
This is a reduction from earnings of $1.76 billion at September 2019, a year earlier.
Company revenue slid from marginally from $28.06 billion in 2019 to $27.94 billion at September this year.
Directors in comments attached to the report stated, “It is important to note that the Group’s performance, like other companies both locally and overseas has been negatively affected by the impact of COVID-19.”
Due to Government orders and requirements, a number of our retailers were closed for majority of the period between April and June.
They stated, “The Group understands and is mindful of the unforeseeable length of time that the virus will continue to impact the way we do business and as such have been working very closely with all key stakeholders to ensure our operations remain open for all segments.”
There was an uptick in performance of Q3, resulting in profits of $622.8 million for the quarter representing an improvement over prior year by $96.3 million.
Total gross ticket sales for the quarter amounted to $19.9 billion, representing an increase of 12.6 per cent over the corresponding period in 2019.
Total gaming income of $10.4 billion represented an increase of $409.9 million or 2.5 per cent when compared to the corresponding period in 2019, while direct expenses amounting to $8.2 billion was $613.1 million or 2.7 per cent, higher than the prior year same period.
Direct expenses excluded prizes paid for fixed odds wagering games as these are included in gaming income. Total prizes paid for the quarter amounted to $14.9 billion representing an increase of 16.28 per cent compared to Q2, 2019.
There were, additionally, directors stated, payments to Government agencies and regulatory bodies was $1.71 billion, 5.2 per cent higher than prior year.
Gross profit for the quarter amounted to $2.2 billion, representing an increase of 6.2 per cent or $354.3 million in comparison to the quarter ending September 2019.
The increase was attributed to improved performance of the segments as well as the addition of Supreme Route Limited and Post to Post Betting Limited to the group results.
The net profit for the period of $1.6 billion was a decline of $210.8 million or 12 per cent when compared to the same period in 2019.
The reduced profitability for the nine-month period continues to be as a result of the second quarter performance which was significantly impacted by COVID-19, directors said. The group says its new strategic focus includes providing alternative methods to access our products to boost revenues.
Overall, year to date gross ticket sales have improved by $2 billion or 3.8 per cent over 2019.
Directors offered the opinion that, overall, diversified product offerings has been able to withstand the impact of the risks associated with COVID.
The increase in the Group’s operating expenses of $531 million year over year is attributed to the consolidation of Post to Post Betting and Supreme Route Limited, which were not included in the Group’s results in Q3 2019.
There was also a one- time strategic expenditure to support the current business objectives and activities associated with planned acquisitions and expenses that support the increased revenues.
In addition to the expansion of Sports Betting and VLTs, SVL is in the final stages to export the lottery signal to South Africa which will expand the company’s earnings potential for lottery products, directors stated.
The Group’s assets at the end of the quarter amounted to $12.3 billion, representing an increase of $2.9 billion or 30.6 per cent when compared to the position as at December 31, 2019.
The major additions are due to the acquisition of Champion Gaming Limited assets.