Commentary on the Six-Month Unaudited Results
The Directors of Supreme Ventures Limited are pleased to release the consolidated unaudited financial results for the second quarter (six-month period) ended 30th April 2007 for the company and its subsidiaries.
The company’s net profit after tax was $228.95 million, which represented a 102% increase over the corresponding period last year. This translated to an increase in earnings per share of $0.087, compared to $0.043 for the corresponding period last year. The positive results are directly attributable to significant increases in revenue from all of the contributing segments, in particular lottery and gaming (VLT). Lottery revenue amounted to $8.17 billion compared to $7.20 billion for the corresponding period last year. VLT revenue was $379.41 million compared to $253.86 million last year. There were also significant increases in revenue from PIN codes and Financial Services.
The company paid out $5.70 billion in lottery prizes to players, an increase of 16.8% over last year, when prizes paid amounted to $4.88 billion. Our agents also saw significant increases in commissions earned. Agent commissions for this review period was $403.52 million compared to $356.29 million for the same period last year.
The overall Cash Pot liability for February to April 2007 was 71.27%, which is in line with the game design. The 2nd quarter also benefited from sales associated with a large Lotto Jackpot of $120 million. This jackpot was won on 31st March 2007 and shared by 10 players.
The company’s asset position improved significantly over the review period, with total assets being $3.18 billion at the end of April 2007. This compared favourably to total assets of $2.83 billion at financial year end (October 2006) and $2.74 billion at the end of the six-month period last year (April 2006).
Contributions to Lottery Tax, BGLC fees and the CHASE Fund amounted to $928.83 million, compared to $868.05 million for the corresponding period last year.
The Board of Directors is also very pleased that the restructuring of Acropolis operations undertaken by the management team has redounded to a significant increase in revenue. Coral Cliff gaming lounge continues to contribute well to total VLT revenue.
We wish to take this opportunity to thank all our stakeholders. To our shareholders, agents, customers and staff, we say thanks for your continued support to our various business segments. Our success would not be possible without your input.
Paul Hoo Brian George
Chairman President & C.E.O.
7th June 2007
