BToto Q2 revenue rises 1.8%

PETALING JAYA: Berjaya Sports Toto Bhd’s (BToto) revenue for the second quarter ended Oct 31, 2016 rose 1.8% to RM1.45 billion from RM1.43 billion a year ago due to contributions from H.R. Owen Plc and International Lottery & Totalizator Systems, Inc. (ILTS).
In a filing with Bursa Malaysia last Friday, the group said HR Owen and ILTS recognised substantial project contract sales during the quarter. However, the higher revenue was partly offset by lower revenue reported by the gaming segment.
The group’s pre-tax profit for the quarter fell 17% to RM95.38 million from RM114.93 million a year ago mainly due to lower results reported by Sports Toto and PGMC coupled with higher investment related expenses incurred.
However, this was mitigated by the improved performance of HR Owen and ILTS during the quarter.
BToto declared a second interim single tier dividend of 4 sen per share amounting to about RM53.9 million payable on Jan 25, 2017. This brings the total dividend distribution per share in respect of financial year ending April 30, 2017 (FY17) to 8 sen per share.
During the quarter, Sports Toto recorded a 6.2% drop in revenue compared with a year ago when it achieved strong sales from high jackpot in the 4D Jackpot game. Pre-tax profit for the segment fell 22.2% due to higher prize payout and operating expenses incurred.
Philippine Gaming Management Corp (PGMC) recorded a 11.8% drop in revenue and 19.5% drop in pre-tax profit mainly due to lower lease rental income earned as a result of lower sales reported by the Philippine Charity Sweepstakes Office (PCSO).
HR Owen recorded higher revenue of RM587.5 million from RM562.3 million a year ago while pre-tax profit rose to RM5.1 million from RM1.9 million a year ago, due to higher revenue boosted by higher sales volume of new cars coupled with certain new models available for sale during the quarter.
“The positive results, however, were partly offset by the unfavourable foreign exchange effect upon conversion to ringgit (reporting currency of the BToto group) in the current quarter under review,” it said.
For the six months ended Oct 31, 2016, revenue rose 4.9% to RM2.89 billion from RM2.76 billion a year ago mainly due to higher revenue reported by HR Owen and the recognition of substantial project contract sales for ILTS.
Pre-tax profit fell 15.9% to RM191.78 million from RM227.91 million a year ago due to the results of Sports Toto and PGMC coupled with higher investment related expenses incurred. This was mitigated by improved results from ILTS during the period.
The group expects the NFO business to be challenging for the remainder of FY17 due to the volatility of the global economic environment, weaker consumer sentiments, rising costs that affect consumer spending and intense competition from illegal gaming activities.
“In spite of the above, the directors expect the group to maintain its market share in the NFO business. On the operation of HR Owen, there is no immediate material or noticeable impact on the luxury vehicles market resulting from the uncertainties of Brexit to date.
“However, the directors remain cautious of the impact that may arise from the Brexit uncertainties on the motor dealership segment’s performance for the remaining quarters of FY17,” it said.