Update BToto 2Q profit falls 27% yoy to RM82.6m, declares 6 sen dividend

by **hlk** Fri 13 Dec 2013, 19:01

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Friday, 13 December 2013 18:37
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KUALA LUMPUR (Dec 13): Berjaya Sports Toto Bhd posted a lower net profit
of RM82.6 million, down 27% year on year, for the quarter to October 2013.
Consequently, it declared a lower interim dividend of six sen compared to 9.5
sen a year ago.
For the quarter, as compared to the previous year corresponding quarter ended
31 October 2012, the number forecasting operator recorded a 4.6% decrease
in revenue at RM866.9 million.
The decrease in profit was mainly due to the corporate exercise expenses
incurred pursuant to the proposed listing of STM Trust (which was aborted) in
the current quarter under review, the company said.
It said its principal subsidiary, Sports Toto Malaysia Sdn Bhd (Sports Toto),
recorded a decrease in revenue and pre-tax profit of 3.3% and 9.2% respectively as compared to the previous year corresponding quarter.
“The drop in revenue was due to strong sales from the high jackpot in the Power Toto 6/55 game as well as more number of draw days in
the previous year corresponding quarter.
“The decrease in pre-tax profit was mainly attributed to lower revenue and higher prize pay-out in the current quarter under review,” it said.
The other subsidiary, BPI, recorded a decrease in revenue of 26.5% mainly due to lower lease rental income earned as a result of lower
sales reported by the Philippine Charity Sweepstakes Office.
But the company added: “In spite of the drop in revenue, BPI registered an increase in pre-tax profit of 18.0% mainly attributed to the
recognition of gain on fair value arising from the business combination of H.R. Owen.”
For the 6-month period to October 2013, the group posted a lower net profit of RM181.4 million and lower revenue of RM1.75 billion.
On outlook, Berjaya Sports Toto said the gaming sector in Malaysia is expected to remain resilient and the directors expect the group “to
maintain its market share in the NFO (number forecasting operator) business”.