PETALING JAYA: Sports Toto Bhd (SPToto) reported RM1.44 billion revenue for the first quarter ended Sept 30, 2024, registering a decrease of 9.5% over the revenue of RM1.59 billion in the previous year’s corresponding quarter.
The group registered pre-tax profit of RM68.4 million in the quarter under review, a drop of 23.8% from RM89.8 million in the corresponding quarter of the previous year.
For the quarter ended Sept 30, 2024, STM Lottery Sdn Bhd reported softer revenue of 9.5% lower due to fewer draws conducted in the current quarter (40 draws versus 42 draws in last year’s corresponding quarter) and lower average sales per draw with lower accumulated jackpot prizes in the current quarter.
The pre-tax profit drop of 7%, was attributed to lower sales registered but this was partially mitigated by lower prize payout in the current quarter under review.
H.R. Owen Plc reported a decrease of 6.3% in revenue compared to the previous year’s corresponding quarter. With the unfavourable foreign exchange effect when converted into ringgit, being the reporting currency of the group, its revenue reported a higher drop of 8.3%.
The drop in revenue was attributed to lower sales volume from the new car sector which was impacted by the product life cycle of car models, leading to the phasing out of certain models, and manufacturers gearing towards the electrification and hybrid cars re-engineering.
Additionally, challenging economic conditions and uncertain sentiments in the United Kingdom following the general election held in July also softened sales in the quarter under review. The above factors led to margin compression following the intense price competition due to oversupply of cars from certain manufacturers. As a result, H.R. Owen registered a pre-tax loss of RM11.2 million compared to a pre-tax profit of RM0.4 million recorded in the previous year’s corresponding quarter, reflecting the combined impact of reduced revenue and margin compression.
The board declared a first interim dividend of 2 sen per share, amounting to about RM27 million, for the financial year ending June 30, 2025. The dividend is payable on Jan 17, 2025 and the entitlement date is fixed for Dec 31, 2024.
The management of SPToto is cautiously optimistic that the group’s business will remain
stable. The closure of legal Number Forecast Operator outlets in the two northern states i.e. Kedah and Perlis will result in the proliferation of illegal operators in these underserved areas. SPToto is hopeful that the legal due process will prevail, thus allowing STM Lottery to re-establish its presence in these states.
Despite the uncertainties and amid headwinds in the global economy, the directors are of the view that the group’s business outlook will remain positive and stable for the remaining quarters of the financial year ending June 30, 2025.
