PETALING JAYA: Sports Toto Bhd posted a net profit of RM71.5 million in the first quarter ended Sept 30, 2022 (Q1’23) compared with a net loss of RM17.67 million in the corresponding quarter last year, driven by higher revenue with the improved performance of its principal subsidiary, STM Lottery Sdn Bhd.
Revenue rose 77.93% to RM1.42 billion compared with RM797.57 million for the same quarter last year, mainly attributed to the performance of STM Lottery, which reported a substantial increase in revenue.
The group said the jump in revenue was mainly due to the higher number of draws conducted, 46 draws in the current quarter compared with only eight draws in the previous year’s corresponding quarter. STM Lottery’s operations in the corresponding quarter of the previous year were adversely impacted due to the cancellation of 37 draws as a result of the nationwide lockdown imposed by the Malaysian government from June 1, 2021 to Sept 13, 2021 due to the Covid-19 pandemic.
Meanwhile, the group’s subsidiary, H.R. Owen plc, registered revenue growth of 7.1% in pound sterling currency for Q1’23, largely attributed to the higher sales from the new car sector.
The group declared a first interim dividend of two sen per share, payable on Jan 20, 2023. The entitlement date has been fixed on Dec 30, 2022. The first interim dividend distribution for the financial year ending June 30, 2023 will amount to RM27 million.
On prospects, the group said the global economic environment remains challenging due to the ongoing geopolitical conflicts, supply chain disruptions, rising interest rates and inflationary pressures despite the Malaysian economy registering a double-digit growth in the third quarter of 2022 at 14.2%, which was driven by the gradual recovery in the labour market conditions as well as higher tourist arrivals following the reopening of international borders.
“As such, the management is cautiously optimistic and remains vigilant on the group’s operations whilst monitoring the development of domestic and global economic issues and its impact on the group’s business operations and financial performance.
“The directors anticipate that the group’s businesses will remain encouraging and steadfast, particularly with the resilient nature of the number forecast operator (NFO) business, as noted in the past economic crises and turbulent periods. Barring any unforeseen circumstances, the directors are confident that the group will continue to lead in terms of market share in the NFO business for the financial year ending June 30, 2023,” it said in a bourse filing today
