BToto sees higher earnings


BToto said the drop in revenue was mainly due to the prolonged movement control order (MCO) phases as Malaysia continued its battle to contain the Covid-19 pandemic.

PETALING JAYA: Berjaya Sports Toto Bhd’s (BToto) net profit for its second quarter ended Dec 31,2020 rose to RM65.06mil from RM61.94mil in the previous corresponding period, mainly due to lower prize payouts as well as lower operating expenses incurred during the period.

Revenue in the second quarter stood at RM1.23bil from RM1.41bil a year earlier, it said in a filing with Bursa Malaysia yesterday.

Despite the revenue drop, BToto said its profit was on par with the previous year’s corresponding period, mainly due to a lower percentage drop in profit compared with the drop in revenue, adding that the higher profit was also contributed by its UK luxury auto retailing business, H.R. Owen Plc.

“H.R. Owen registered a marginal increase in revenue of 0.8% to RM541.4mil from RM537.1mil in the previous year’s corresponding quarter, while pre-tax profit for the current quarter was higher at RM11.1mil compared to RM2.4mil in the previous year’s corresponding quarter.

“The higher pre-tax profit was mainly attributed to lower operating expenses incurred, resulting from certain austerity measures undertaken by the company, coupled with support fee income received from franchises as well as certain business relief support from the UK government during the current quarter under review.”

For the six-months period ended Dec 31,2020, BToto’s net profit increased to RM132.92mil from RM128.89mil in the previous corresponding period, while revenue stood at RM2.58bil compared with RM2.84bil a year earlier.

BToto said the drop in revenue was mainly due to the prolonged movement control order (MCO) phases as Malaysia continued its battle to contain the Covid-19 pandemic.

“BToto’s drop in pre-tax profit of 1.2% was mainly due to its drop in revenue but was mitigated by lower prize payout and lower operating expenses incurred in the current period under review.”

The company added that H.R. Owen registered a revenue growth of 6.1% to RM1.21bil from RM1.14bil in the previous year’s corresponding period.

It said this was mainly attributed to higher sales generated from the new car sector, primarily due to backlog fulfilment after the earlier Covid-19 pandemic lockdown ended on May 31,2020 in the UK.

“The increase in revenue was also attributed to the favourable foreign exchange effect in conversion into ringgit in the current period under review.”

BToto also declared a second interim dividend of 2.5 sen per share in respect of the financial year ending June 30,2021, to be paid on April 23.

On its prospects, the company said its operations have been affected under the re-imposition of the MCO by the government from Jan 13,2021, where its outlets in all states in Malaysia except Sarawak were closed due to the MCO restrictions and only resumed operations on Feb 16.

“In the UK, the operations of the subsidiary companies of the group are also temporarily closed as the UK is currently under its third nationwide lockdown, which came into force on Jan 5,2021. This posed further challenges to the business operations of the group.

“Thus, it is extremely challenging to ascertain the full extent and duration of the impact to the group’s operations and financial performance from the government-imposed restrictions.

'The economy is expected to recover at a slower pace as the business environment and consumer sentiment remain weak until the vaccination programmes are well underway in countries where the group’s subsidiary companies operate.”

In spite of this, BToto said its directors are cautiously optimistic that the group’s businesses will gradually recover, with the fairly resilient nature of the number forecast operators business that has been observed in past economic crises and turbulent

periods.

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