PETALING JAYA: The expected earnings recovery for Sports Toto Bhd remains intact despite the change in rulings leading to reduced special draws from 2023 and the mandated closure of outlets in Kedah.
While lower special draws and the closure of outlets in Kedah are negative developments for Sports Toto, the net impact on the numbers forecast operator (NFO) will likely be insignificant.
This is because profits from special draws are inherently low due to an extra 10% tax charged for these games, while ticket sales in Kedah historically had always been below the group’s average given the low non-Muslim population in the state.
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