PETALING JAYA: Sports Toto Bhd reported revenue of RM1.65 billion for the fourth quarter ended June 30, 2024 (Q4’24), an increase of 2.1% over the RM1.62 billion posted in the corresponding quarter of the previous financial year.
The group registered pre-tax profit of RM104.2 million, which is an improvement of 9.6% from the pre-tax profit of RM95 million in the corresponding quarter of FY23.
The improved results for the quarter ended June 30, 2024 was mainly due to the better performance reported by the group’s principal subsidiary company, STM Lottery Sdn Bhd.
STM Lottery reported stronger revenue growth of 9.8% for Q4’24, mainly attributed to higher sales per draw coupled with an additional draw conducted compared to the previous year’s corresponding quarter (41 draws versus 40 draws respectively). Pre-tax profit increased by 47.6% on the back of higher revenue, coupled with lower prize payout.
Meanwhile, HR Owen plc, the group’s luxury car unit, reported a 5.1% drop in revenue in Q4’24 compared to the previous year’s corresponding quarter, mainly attributed to lower volume of sales which stemmed from the phasing out of models that had come to the end of their product life cycle.
However, with a favourable foreign exchange effect, HR Owen’s revenue dropped only 0.1% when converted into ringgit, the reporting currency of the group. Pre-tax profit was lower at RM17.6 million compared to RM22.8 million in last year’s corresponding quarter due to higher operating costs and depreciation incurred following the completion and full operation of Hatfield Centre in May 2023.
For the full financial year ended June 30, 2024, Sports Toto reported revenue of RM6.3 billion, representing an increase of 3.4% over the RM6.1 billion registered in FY23. The group’s pre-tax profit also increased by 1.2% to RM343.3 million compared to the pre-tax profit of RM339.3 million reported in the previous year, which was mainly attributed to improved performance from STM Lottery but partially offset by the lower results reported by HR Owen.
STM Lottery registered revenue and pre-tax profit growth of 4.3% and 29.6% respectively compared to the previous year despite conducting fewer draws (167 draws versus 175 draws). The revenue growth was due to increased sales per draw driven by higher accumulated jackpot prizes, while the jump in pre-tax profit was aligned with revenue growth along with lower prize payout for the year.
HR Owen's revenue declined 3.3% in the financial year ended June 30, 2024 compared to the previous year, which was mainly attributed to lower car sales with the phasing out of certain models as well as the negative impact of challenging economic conditions in the United Kingdom (UK). However, with the favourable foreign exchange, it reported an increase in revenue of 5% when converted into ringgit. HR Owen posted lower pre-tax profit of RM13.5 million compared to RM41.2 million last year. This was mainly attributed to higher operating costs coupled with higher depreciation following the completion and full operation of Hatfield Centre, as well as the impact of UK interest rate hikes.
The board of directors of Sports Toto has declared a fourth interim dividend of two sen per share for the financial year ended June 30, 2024. The dividend, payable on Oct 18, amounts to RM27 million. The entitlement date has been fixed on Oct 2.
With this, the total dividend distribution for the financial year is 10 sen per share, amounting to about RM134 million.
The management of Sports Toto is cautiously optimistic that the group’s business will remain stable. The directors are of the view that despite the subdued growth of the global economy, the group’s business outlook will remain positive and stable for the financial year ending June 30, 2025.
