PETALING JAYA: Berjaya Sports Toto Bhd (BToto) has posted a higher revenue of RM1.25bil for the second quarter ended Dec 31, 2021 from RM1.23bil a year earlier.
The gaming company, however, recorded an 18% decline in net profit for the quarter to RM53.26mil.
The group, which recorded a net profit of RM65.06mil in the previous corresponding quarter, said its lottery business dragged down the second-quarter bottom line due to a subdued sales volume and a higher prize payout in the three-month period.
The lottery business, conducted via STM Lottery Sdn Bhd, saw a higher number of draws amid stricter standard operating procedures implemented at the outlets.
The marginal growth in revenue was attributed to the higher revenue reported by HR Owen Plc but was offset by the drop in revenue for STM Lottery. HR Owen is a luxury car distributor based in the United Kingdom.
Its second-quarter revenue grew by 18.1% y-o-y, mainly attributed to higher sales in the used-car sector. On the other hand, STM Lottery’s revenue dropped by 13.3%.
BToto’s earnings per share in the latest second quarter was 3.97 sen. The group declared a dividend of one sen in the three-month period.
Cumulatively, for the first six months of financial year 2022, BToto’s earnings fell 73.22% y-o-y to RM35.59mil as compared to RM132.92mil a year earlier.
Revenue also dropped 20.81% y-o-y to RM2.04bil from RM2.58bil in the previous corresponding period.
“This was mainly due to lower results reported by STM Lottery but partly mitigated by the improved results contributed by HR Owen,” stated BToto in a statement yesterday.
BToto said STM Lottery’s revenue dropped substantially by 50.3% y-o-y mainly due to the nationwide lockdown imposed by the government from June 1, 2021 to Sept 13, 2021 which saw 37 draws being cancelled.
As for HR Owen, its revenue rose 11.4% y-o-y as a result of higher sales generated from the used car sector.
“Utilising a new marketing strategy, the company capitalised on the supply shortage in this sector,” according to the group.
Looking ahead, BToto said the business environment is expected to recover gradually, with the further easing of restrictions by the respective governments of countries in which the group’s subsidiary companies operate.
“The group’s management will remain vigilant and continue to monitor the development of the Covid-19 situation and its impact to the group’s operations and financial results.
“The directors are cautiously optimistic that the group’s businesses will gradually recover 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 it will maintain its lead in terms of market share in the NFO business for the financial year ending June 30, 2022 in line with the recovery of the NFO industry when the overall economy improves,” BToto said.