Berjaya Sports Toto posts higher 2Q net profit of RM65m

TheStar Tue, Feb 23, 2021 07:03pm - 6 days ago

KUALA LUMPUR: Berjaya Sports Toto (M) Bhd posted net profit of RM65.06mil in the second quarter ended Dec 31,2020, an increase of 5% from RM61.94mil a year ago due to higher pre-tax profit from iH.R. Owen Plc (H.R. Owen).

In a statement issued on Tuesday, BToto said its revenue slipped by 12.3% to RM1.23bil from RM1.41bil a year ago. Earnings per share were 4.84 sen compared with 4.60 sen.

It declared a lower dividend of 2.5 sen a share compared with four sen for the financial year ending June 30,2021 and payable on April 23. The entitlement date has been fixed on April 1.

Commenting on the lower revenue, BToto said it was mainly due to lower revenue reported by Sports Toto Malaysia Sdn Bhd (Sports Toto).

“In spite of the drop in revenue, pre-tax profit of RM95.41mil was on par with the pre-tax profit of RM95.39mil registered in the corresponding quarter of the previous year.

“This was mainly due to a lower percentage drop in Sports Toto's pre-tax profit compared to its drop in revenue coupled with higher pre-tax profit contributed by H.R. Owen Plc (H.R. Owen).

“This was partly offset by higher share of losses in the group's associated companies in the current quarter, ” it said.

It said Sports Toto saw its revenue drop by 19.9% and pre-tax profit by 3.6%.

The lower revenue was mainly due to a third wave of the Covid-19 pandemic from late September 2020 and persisted throughout the current quarter, leading to the implementation of Enhanced Movement Control Order (EMCO) and Conditional Movement Control Order (CMCO) in certain areas and states in Malaysia.

The selective EMCO and CMCO dampened the recovery achieved during the Recovery Movement Control Order (RMCO) period.

“The drop in its pre-tax profit, in line with lower sales, was mitigated by lower prize payout as well as lower operating expenses incurred in the current quarter under review, ” it said

As for H.R. Owen, it registered a marginal increase in revenue of 0.8% to RM541.4mil from RM537.1mil a year ago.

Pre-tax profit for the current quarter was higher at RM11.1mil compared to RM2.4mil a year ago.

The higher pre-tax profit was mainly due to lower operating expenses incurred, resulting from certain austerity measures undertaken by the company, coupled with support fee income received from franchises as well as certain business relief support from the UK Government during the current quarter under review.

For the first half, its net profit increased slightly by 3.1% to RM132.91mil from RM128.89mil in the previous corresponding period. However, its revenue came in lower at RM2.58bil from RM2.84bil.


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