Kenanga Research has reiterated its
PETALING JAYA: Berjaya Sports Toto
(BToto) shed four sen after its net profit fell 51.5% year-on-year (y-o-y) to RM35.18mil in the fourth quarter ended April 30.
The stock closed at RM2.49.
The group had attributed the decline in its net profit to impairment in value for certain available-for-sale investments and goodwill relating to leasing of lottery equipment business in Philippines.
Analysts note that while the group will benefit from a recovery in consumer sentiment following the the zero-rating of the GST, uncertainty remains on whether the Sales and Service Tax (SST) will affect numbers forecast operators (NFO) and if gaming taxes will be raised.
They said the ongoing 2018 FIFA World Cup could also negatively impact its revenue as quarterly ticket sales per draw fell between 3% to 3.5% y-o-y during the 2014 FIFA World Cup.
Maybank Investment Bank Research estimates that the zero-rating of the GST effective June 1, 2018 will boost luck normalised earnings by about 10% y-o-y.
“That said, we are unsure if the SST come Sept 1, 2018 will impact NFOs or if gaming taxes will be hiked,” it said.
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