Profit surge for Supreme Ventures

Profit bolted 226 percent at Supreme Ventures, from $192 million in the covid-19 impacted June 2020 quarter to $627 million this year. For the half year to June, profit climbed 32 percent from $929 million in 2020 to $1.23 billion in 2021.
Total revenues recovered from the depressed 2020 covid-19 affected out turn and rose 46 percent for the quarter, to $10.85 billion from $7.4 billion in 2020 and popped 23 percent for the year to date, to $21.6 billion from $17.54 billion in 2020
Gross profit surged 57 percent to $236 billion in the June quarter from $1.5 billion in 2020 as direct cost rose 44 percent from $5.9 billion to $8.5 billion. For the half year, gross profit climbed 15 percent in the 2021 half year to $4.37 billion from $3.8 billion as direct cost popped 25 percent to $17.2 billion from $13.74 billion. Selling, administrative and other expenses spiked 44 percent to $1.55 billion, from $1.08 million in June 2020 Quarter and climbed 21 percent to $2.87 billion from $2.38 billion in 2020.
Financial instruments contributed income of $128 million in the quarter versus a loss of $27 million in 2020 and ended the half year with income of $139 million, versus a loss of $81 million in 2020, while taxation came in at $325 million from $208 million in 2020 second quarter and for the half year $487 million in 2021 versus $480 million in 2020.
The company is grouped into four reporting segments; Lottery, Sports Betting includes horseracing, Pin Codes and Other. During the six months, the Lottery segment generated revenues of $9.88 billion versus $9.1 billion in 2020, with profit falling 8 percent to $1.54 million compared to $1.7 billion in 2020. Sports Betting pulled in revenues of $5.7 billion versus $2.6 billion in 2020 and transformed a loss of $188 million profit into a profit of $403 million in 2021, Pin Codes generated income of $5.74 billion in 2021 with a profit of $95 million versus revenues of $5.75 billion in 2020 and profit of $125 million and the segment – Other had revenues of $198 million with a loss of $533 million compared to revenues of $44 million and with a loss of $187 million in 2020.

Gross cash inflows ended at $2 million, after paying corporate taxes of $613 million and spending $1.9 billion on addition to fixed assets, acquisition of a subsidiary and paying $1.27 billion in dividends, the group paid out $2.24 billion of cash brought forward, leaving just over $4 billion in cash funds at the end of June. Current assets ended the period at $6.5 billion inclusive of trade and other receivables of $2 million, cash and bank balances of $4 billion. Current liabilities ended at $4.3 billion, leaving net current assets at $2.2 billion. At the end of June, shareholders’ equity stood at $4.1 billion, with long term borrowings at just $5.4 billion and short term loans at $350 million.
Earnings per share amounted to 46 cents for the six months and 23.4 cents for the June quarter. The stock traded at $19.25 on the Main Market of the Jamaica Stock Exchange with a PE ratio of 19 times based on forecast of $1 per share, versus an average of 16.3 for the market. The net asset value is $1.56, with the stock selling at 12 times book value.

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