BToto second-quarter net profit down on lower revenue

PETALING JAYA: Berjaya Sports Toto Bhd (BToto) has registered a 0.7% drop in net profit to RM 61.73mil in its second quarter ended Oct 31 as compared to the previous corresponding period.

This was on the back of a 4.9% lower revenue at RM 1.38bil from RM 1.45bil 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’s corresponding quarter.

On a quarter-on-quarter (q-o-q) basis, H.R. Owen’s revenue was down by 8% mainly due to a drop in sales from the new and used cars sector, as a result of softening demand in the United Kingdom car market, as well as the product life cycle of the car models available for sale.

In a filing with Bursa Malaysia, BToto said the drop in revenue was mitigated by the higher revenue registered by Sports Toto Malaysia Sdn Bhd and Philippine Gaming Management Corp (PGMC).

“Sports Toto, the principal subsidiary, registered an increase in revenue of 4.1% q-o-q, mainly attributed to strong sales from the high jackpot in the Grand Toto 6/63 game, which recorded its highest jackpot ever of RM 69.6mil in September 2017,” added BToto.

On the other hand, PGMC recorded a higher revenue of 11.1% as compared to the previous year’s corresponding period, as a result of improved lease rental income earned from higher sales reported by the Philippine Charity Sweepstakes Office in the quarter under review.

“The board does not foresee any substantial change in the business environment in which our businesses operate for the remaining quarters of the financial year ending April 30, 2018 (FY18).

“We remain confident that the group will continue to maintain its market share in the numbers forecast operating (NFO) segment.

“Our core NFO business undertaken by Sports Toto will continue to be adversely impacted by rampant illegal gaming activities, as well as weak consumer spending and sentiments,” said BToto.