Berjaya Sports Toto posts higher revenue for Q2

PETALING JAYA: Berjaya Sports Toto Bhd (BToto) posted 0.9% higher revenue of RM1.25 billion for its second quarter ended Dec 31, 2021 compared to RM1.23 billion in the same quarter of the previous year, attributed to HR Owen Plc’s performance, which was offset by lower revenue from its principal subsidiary, STM Lottery Sdn Bhd (formerly known as Sports Toto Malaysia Sdn Bhd).

Its pre-tax profit fell 16.4% to RM79.79 million from RM95.41 million previously, mainly due to STM Lottery recording a lower pre-tax profit, although it was mitigated by higher pre-tax profit from HR Owen.

BToto disclosed that STM Lottery’s lower revenue and pre-tax profit were due to a softer recovery after it resumed operations following the nationwide lockdown from June 1 to Sept 13, 2021. In addition, its sales volume was subdued by stricter standard operating procedures implemented despite the higher number of draws, and compounded by a higher prize payout in the quarter.

HR Owen’s improved results were mainly attributed to the higher sales and better profit margin generated from the used-car sector, resulting from positive market tailwinds due to continued supply shortage. The improvement in the financial results was also attributed to the favourable foreign exchange effect of converting pound sterling into ringgit in the quarter.

For the six months, the group’s revenue fell 20.8% to RM2.04 billion from RM2.58 billion in the same corresponding period of last year, while pre-tax profit stood at RM67.39 million, a 65.8% decline from RM196.86 million, mainly due to lower results reported by STM Lottery but partly mitigated by the improved results contributed by HR Owen.

BToto has declared a second interim dividend of 1 sen per share payable on April 22, 2022. The total dividend distribution for the six-month period is RM26.8 million, representing about 75.4% of the attributable profit of the group.

On prospects, BToto said that with the further easing of restrictions by the respective governments of countries in which the group’s subsidiary companies operate in, the business environment is expected to recover gradually, with some risk from the spread of the Covid-19 Omicron variant. The group’s management will remain vigilant and continue to monitor the development of the Covid-19 situation and its impact on the group’s operations and financial results.

“The directors are cautiously optimistic that the group’s business will gradually recover with the resilient nature of the number forecast operator (NFO) business as noted in the past economic crisis.”

The board is confident it will maintain its market share lead in the NFO business for the financial year, in line with the industry’s recovery alongside the overall economy.