Update Berjaya Sports Toto 1Q profit falls 10.7% yoy, pays 4 sen dividend

Update Berjaya Sports Toto 1Q profit falls 10.7% yoy, pays 4 sen dividend
Business & Markets 2013
Written by Cynthia Blemin of theedgemalaysia.com
Thursday, 12 September 2013 18:55

KUALA LUMPUR (Sept 12): BERJAYA SPORTS TOTO BHD [] posted a 10.7% decrease year on year in net profit to RM98.79 million for the first quarter ended July 31, mainly due to the decrease in revenue and pre-tax profit of its principal subsidiary, Sports Toto Malaysia Sdn Bhd (Sports Toto).

The group recorded a net profit of RM110.69 million in the previous corresponding period.

Revenue for the quarter also dipped, declining by 1.42 % to RM887.1 million from a year ago.

It declared an interim dividend of 4 sen per share.

According to an announcement on Bursa today, the group recorded a decrease in revenue and pre-tax profit of 1.4% and 7.8% respectively, mainly due to the results of Sports Toto.


“Sports Toto, the principal subsidiary, recorded a decrease in revenue of 3.4% but registered an increase in pre-tax profit of 10.2% as compared to the previous year corresponding quarter.


“The increase in pre-tax profit was attributed to a lower prize payout in the current quarter under review,” it added.

The main business segment of the group is toto betting and leasing of lottery equipment as the group is primarily engaged in the number forecast operation (NFO) business, it said.


The key factors affecting the performance of the group include the disposable income of the general public, Jackpot cycles, luck factor and the number of draws in the financial period, it added.

For the first quarter, basic earnings per share was 7.36 sen, 12.06% lower as compared to 8.37 sen in the previous corresponding quarter.

In spite of the cautious economic outlook, it said the gaming sector is expected to be resilient and the group expects to maintain its market share in the NFO business.