Berjaya Sports Toto Q1 net profit up 26.5%

Better performance and forex gains in two units push up net profit

PETALING JAYA: Berjaya Sports Toto Bhd’s net profit for the first quarter jumped 26.5% to RM74.3mil, boosted by improved performance and foreign exchange gains by two subsidiary companies.

The number forecast operator (NFO) attributed the higher revenue and net profit for the period ended July 31, 2017, to improved performance by 98.38% indirect-owned UK automobile distributor HR Owen Plc and foreign exchange gains recognised by a foreign subsidiary company.

The group’s revenue for the period was up 2.5% to RM1.47bil.

In its filing to the stock exchange, the group said HR Owen had registered an increase in revenue to RM670.7mil from RM626.1mil a year ago, while pre-tax profit more than doubled to RM15.5mil from RM6.9mil.

“The improved results reported by HR Owen was mainly due to revenue growth attributed to higher new and used vehicle sales coupled with certain new models available for sale during the current quarter,” it said.

The group’s unit Sports Toto Malaysia Sdn Bhd, meanwhile, recorded a 2.3% drop in revenue due to a lower number of draws.

In spite of the drop in revenue, the company registered a 2.3% increase in pre-tax profit on the back of lower prize payouts during the period.

It added that Philippine Gaming Management Corporation (PGMC) also saw a decrease in revenue and pre-tax profit of 4.6% and 25.2% respectively due to lower lease rental income and higher operating expenses.

Compared to the preceding quarter, the group recorded a marginal 0.4% drop in revenue, mainly due to lower revenue from Sports Toto and PGMC, but a 15% increase in pre-tax profit due to improved results from Sports Toto and HR Owen.

The board declared a first interim dividend of 4 sen per share for the financial year ending April 30, 2017 and payable on Oct 24, 2017.

The entitlement date has been fixed on

October 10, 2017.

Based on the number of ordinary shares in issue and with voting rights as at September 19, 2017, the group noted that the first interim dividend distribution will amount to RM53.9mil, representing about 72.5% of the group’s attributable profit for the first quarter.

Moving forward, the group said it expects the NFO business to be challenging for the remaining quarters of the financial year ending April 30, 2017, in view of intense competition from illegal gaming activities, coupled with rising costs and weak consumer sentiment.

“Notwithstanding these challenges, the directors are confident that the group will continue to maintain its market share in the NFO business for the remaining quarters of the financial year,” it said.