BToto Q1 revenue up 8%
PETALING JAYA: Berjaya Sports Toto Bhd (BToto) registered an 8.2% increase in revenue to RM1.44 billion in the first quarter ended July 31, 2016 (Q1) from RM1.33 billion in the corresponding quarter of the previous financial year, mainly attributed to the results of Sports Toto Malaysia Sdn Bhd and H.R. Owen Plc.
The group’s pretax profit dropped by 14.7% to RM96.4 million mainly due to the results of H.R. Owen as well as the foreign exchange effect recognised by a foreign subsidiary company during the current quarter but was partially offset by the improved results reported by Sports Toto, the principal subsidiary.
Sports Toto recorded an increase in revenue of 3.6%, attributed to the strong sales from the high jackpot in the 4D Jackpot game in the current quarter under review, and an increase of 7.5% in pre-tax profit, primarily due to the lower prize payout in the current quarter under review.
H.R. Owen registered an increase in revenue to RM626.1 million from RM532.9 million recorded in the previous year’s corresponding quarter, mainly due to higher revenue boosted by the higher sales volume of new cars coupled with certain new models being available for sale during the current quarter. Pre-tax profit decreased to RM6.9 million from RM10.9 million reported in the same period last year due to higher operating expenses incurred in the current quarter under review.
The board has declared a first interim single-tier dividend of 4 sen per share in respect of the financial year ending April 30, 2017 and payable on Oct 18, 2016. The entitlement date has been fixed on Oct 7, 2016. The first interim dividend distribution for the financial year ending April 30, 2017 will amount to RM53.9 million representing about 91.8% of the attributable profit of the group for Q1.
BToto said the subdued economic climate and rising costs is expected to continue to dampen consumer spending.
“The directors expect the number forecast operator (NFO) business to be challenging for the remaining quarters of the financial year ending April 30, 2017 in view of the weaker consumer sentiment and increasing illegal gaming activities.”
In spite of the above, the directors expect the group to maintain its market share in the NFO business.
On the operation of H.R. Owen, it said there is no immediate material or noticeable impact on the luxury vehicles market resulting from the uncertainties of Brexit as at to-date. However, the directors are cautious of the uncertainties that may arise from the Brexit and the impact it may have on the motor dealership segment performance for the remaining quarters of the financial year ending April 30, 2017.