BToto net profit almost halved in third quarter

Sports Toto Malaysia Sdn Bhd executive director Vincent Seow delivering his speech during the launching Sports Toto National Charity Convoy 2011 at Berjaya Times Square boulevard.

KUALA LUMPUR: Berjaya Sports Toto Bhd’s (BToto) net profit for the third quarter ended Jan 31, 2016 was almost halved to RM58.3mil from RM104.6mil a year earlier.

This was mainly due to lower contribution from its principal subsidiary, Sports Toto Malaysia Sdn Bhd, which recorded a 35.3% decrease in pre-tax profit owing to higher prize payout and the impact of the goods and services tax (GST).

Profit was also impacted by the refund of RM18mil stamp duty paid pursuant to the rescission of the share purchase agreement (resulting from the aborted listing of Sports Toto Malaysia Trust on the Singapore Exchange Securities Trading Ltd) in the previous corresponding quarter. 

Revenue, meanwhile. slid by 0.4% to RM1.32bil from a year ago.  

However, the lacklustre financial performance was mitigated by higher revenue reported by two subsidiaries (on the translation of the overseas revenue to ringgit) - online lottery equipment lessor Philippine Gaming Management Corp (PGMC) and motor retailer H.R. Owen Plc. 

For the cumulative nine-month period, BToto also recorded a fall in net profit to RM201.5mil from RM282.6mil despite higher revenue recorded. 

The revenue for the period increased by 6.6% to RM4.07bil mainly attributable to improved revenue contribution from PGMC and H.R. Owen. 

The company has declared a third interim single-tier dividend of four sen per share in respect of the financial year ending April 30 and payable on April 28. 

The entitlement date has been fixed on April 13. This will bring the total dividend distribution per share in the current financial year to 14 sen.

BToto anticipated a tough year ahead due rising costs resulting from the challenging economic conditions which continued to dampen consumer spending as well as the impact of the GST.