BToto Q1 net profit up on higher revenue

  • Business
  • Thursday, 20 Sep 2018

This was on the back of a 4.9% lower revenue at RM1.38bil from RM1.45bil previously, mainly due to reduced revenue from H.R. Owen Plc during the quarter under review, as well as the recognition of substantial project contract sales by International Lottery & Totalizator Systems, Inc in the previous year

PETALING JAYA: BERJAYA SPORTS TOTO BHD’s (BToto) net profit for its first quarter ended July 31 rose by close to 17% to RM86.89mil from RM74.31mil on the back of its revenue also rising by 2% to RM1.5bil compared with the same quarter a year ago.

The group’s core business is in the numbers forecast operation (NFO), which includes toto betting and other related ancillary businesses.

The group also has strategic investments in auto retailing and the provision of after-sales services and the hospitality sector.

Its improved performance in revenue was mainly attributed to the growth that was attained by H.R. Owen Plc, the company said in a statement.

Profit improvement, meanwhile, was mainly due to the improved results of Sports Toto Malaysia Sdn Bhd and H.R. Owen, it said.

The company has declared a dividend of four sen per share, unchanged from the previous year’s corresponding quarter.

The dividend will be payable on Oct 23, with an entitlement date of Oct 5.

Total payout would amount to RM53.89mil, representing 62.01% of the first-quarter’s net profit, it said.

“Sports Toto registered an increase in revenue and pre-tax profit of 0.2% and 14.0%, respectively, as compared to the previous year’s corresponding quarter.

“The higher increase in pre-tax profit was mainly attributed to the lower prize payout and operating expenses incurred in the current quarter under review,” the company said.

H.R. Owen registered an increase in revenue of 4.2% to RM698.8mil from RM670.7mil in the previous year’s corresponding quarter, while pre-tax profit increased by 35.4% to RM20.9mil from RM15.5mil previously.

It said the improved results in the quarter by H.R. Owen were mainly due higher new vehicle sales.

As for its lottery equiment business, Philippine Gaming Management Corp (PGMC), it recorded a marginal drop in revenue of 0.6% resulting from lower lease rental income earned from the Philippine Charity Sweepstakes Office, while it registered an increase in pre-tax profit of 12.2% mainly due to the effect of higher operating expenses incurred in the previous year’s corresponding quarter.

Upon translation to ringgit, PGMC reported a drop in revenue of 11.3% while pre-tax profit only increased marginally by 0.1% as a result of the unfavourable foreign exchange effect during the current quarter under review.

Moving forward, the company said it expects Sports Toto’s business performance to be satisfactory and it would be able to continue maintaining its market share in the NFO business for the remaining quarters of the 2019 financial year.

BToto said the key factors affecting it were the disposable income of the public, jackpot cycles, the luck factor, illegal gaming operations and the number of draws in the financial period, while the auto retailing business would be affected by the trend in prestige and specialist cars predominantly in London and the ultimate impact of Brexit.

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