PETALING JAYA: Sports Toto Bhd (SPToto) reported revenue of RM1.48 billion for the second quarter ended Dec 31, 2024 Q2’25), an increase of 8.3% compared to RM1.37 billion in the corresponding quarter of the previous year.
The group’s pre-tax profit improved by 71.8% to RM82.64 million in the quarter under review, from RM48.12 million in the corresponding quarter last year
In the quarter ended Dec 31, 2024, subsidiary STM Lottery Sdn Bhd achieved revenue growth of 6.1% compared to the corresponding quarter of the previous year, primarily driven by improvement in average sales per draw and higher accumulated jackpot prizes in Lotto games, despite having only 41 draws in the quarter under review compared to 42 draws in Q2’24.
Pre-tax profit increased by 31.5%, primarily attributed to a combination of higher sales and lower prize payout in the quarter under review.
Meanwhile, subsidiary HR Owen Plc’s revenue increased by 9.4% in Q2’25 compared to the corresponding quarter of last year. Sales growth was primarily driven by positive demand within the used car sector contributed by better sales volume and increased average selling price. The new marque, Lotus, which is now represented by HR Owen, has also generated new sales.
HR Owen reported a reduced pre-tax loss of RM7.8 million compared to a loss of RM15.8 million in the same quarter of last year. The narrower loss reflects revenue growth amid the challenging economic environment in the United Kingdom.
For the six-month period ended Dec 31, 2024, the group’s revenue was lower by 1.3% to RM2.92 billion, mainly attributed to lower sales recorded by STM Lottery and HR Owen. Despite the drop in revenue, the group reported a 9.5% increase in pre-tax profit to RM151 million for Q2’25 from RM137.9 million in Q2’24, mainly driven by improved results from STM Lottery.
For the period under review, STM Lottery reported a slight decline in revenue of 1.9% mainly due to fewer draws conducted (81 draws versus 84 draws in the previous year’s corresponding period). Despite the drop in revenue, pre-tax profit increased by 10.5% mainly attributed to lower prize payout.
HR Owen reported an increase in revenue of 2.4% compared to the previous year’s corresponding period, with positive demand within the used car sector alongside a mix of sales volume and increased average selling price. The Lotus brand with its commencement of deliveries during the current reporting period also contributed to the increase in revenue. However, due to unfavourable foreign exchange, it reported a marginal drop in revenue of 0.5% when converted into ringgit, being the reporting currency of the group.
HR Owen reported a higher pre-tax loss of RM19.3 million compared to a pre-tax loss of RM15.5 million in the previous year’s corresponding period, attributed to higher operating expenses incurred associated with the additional new marque, as well as weaker new car sales due to under performance of certain existing brands represented.
SPToto’s board has declared a second interim dividend of 2 sen per share, amounting to about RM26.7 million, for the financial year ending June 30, 2025. The dividend is payable on April 18 and the entitlement date is set on March 28. The total dividend distribution for the financial period ended Dec 31, 2024 is about RM53.7 million.
Directors of SPToto remains cautiously optimistic that the group’s business will remain steadfast.
With regard to the closure of legal Number Forecast Operation (NFO) outlets in the two northern states (Kedah and Perlis), the directors are hopeful that legal due process will prevail, thus allowing STM Lottery to re-establish its presence in these states. Nevertheless, the NFO business is expected to continue delivering growth, in line with the ongoing popularity of its Lotto and digit games to achieve commendable results.
Despite the prevailing uncertainties and global economy headwinds including trade policies impact, inflationary trends and regional growth disparities, the directors are of the view that the group’s business will grow steadily and maintain a positive outlook for the remaining quarters of the financial year ending June 30, 2025.
