KUALA LUMPUR: Berjaya Sports Toto Bhd’s (BToto) first-quarter earnings fell 19% to RM58.74mil from a year earlier, hit by the lower profit recorded by its UK motor retailing subsidiary HR Owen Plc and the foreign exchange effect recognised by an unnamed foreign subsidiary.
BToto, which is mainly involved in the number forecast operation (NFO), said the pre-tax profit of 72%-owned HR Owen slumped to RM6.9mil for the quarter to July 31 compared with RM10.9mil previously due to higher operating expenses. BToto’s revenue for the quarter grew 8% year-on-year to RM1.44bil, as revenue of its principal subsidiary Sports Toto Malaysia Sdn Bhd and HR Owen both increased.
Sports Toto, it said, achieved 3.6% higher revenue, thanks to the strong sales from the high jackpot in the 4D Jackpot game in the quarter under review. Its pre-tax profit rose 7.5%, primarily due to the lower prize payout in the quarter. HR Owen’s revenue increased as well to RM626.1mil from RM532.9mil recorded in the previous year’s corresponding quarter.
“This was mainly due to higher sales volume of new cars coupled with certain new models available for sale during the current quarter,” BToto said.
BToto has declared a first interim dividend of 4 sen per share (previously 5 sen), which would amount to RM53.9mil or about 91.8% of the attributable profit of the group for the quarter.
The dividend will be payable on Oct 18, with the entitlement date fixed on Oct 7. On its prospects, BToto said the subdued economic climate and rising costs were expected to continue to dampen consumer spending.
“The directors expect the 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,” it said.
Nevertheless, the group expects to maintain its market share in the NFO business.
