Sports Toto Berhad reported a 54% increase in revenue to RM1.73 billion from RM1.12 billion in the corresponding quarter of the previous year. Its pre-tax profit surged 245.6% to RM122.4 million from RM35.4 million in the corresponding quarter of the previous year. The higher revenue and pre-tax profit were primarily attributed to higher results reported by its principal subsidiary, STM Lottery Sdn Bhd as well as from H.R. Owen Plc (“H.R. Owen”).
STM Lottery registered a revenue growth of 70.3% despite having a lower number of draws in the current quarter under review, mainly due to better sales from its lotto games resulting from higher accumulated jackpot prizes coupled with stronger sales during the festive period in February 2022. Furthermore, the previous year’s corresponding quarter was also impacted by the second Movement Control Order which was in effect from 13 January 2021 to 18 February 2021 in all states in Malaysia whereby all outlets were closed except for those in Sarawak. Its pre-tax profit rose by 262.0% in the current quarter under review in line with the higher revenue achieved coupled with a lower prize payout.
H.R. Owen recorded revenue growth of 41.6% in the current quarter to RM895.1 million from RM632.1 million reported in the corresponding quarter of the previous year, whilst its pre-tax profit increased by 64.3% to RM36.3 million in the current quarter as compared to RM22.1 million in the corresponding quarter of the previous year. The improved results were attributed to the higher sales from both the new and used car sectors in the current quarter whereby business had resumed full operations. The company’s operations in the previous year’s corresponding quarter were negatively impacted by the third national lockdown in the United Kingdom from 5 January 2021 to 12 April 2021.
The Group reported a 1.9% increase in revenue as compared to the corresponding period of the previous year, mainly attributed to higher sales registered by H.R. Owen, though this was offset by lower sales reported by STM Lottery. The 18.3% drop in pre-tax profit was mainly from the lower results reported by STM Lottery, which was mitigated by improved results from H.R. Owen. The Group’s share of profits in the associated companies in the current financial period, as opposed to share of losses in the previous year’s corresponding period, also mitigated the effects of the decrease in the Group’s pre-tax profit.
For the current 9-month period under review, STM Lottery’s revenue decreased by 18.5% with the cancellation of 37 draws due to the nationwide lockdown / National Recovery Plan implemented by the Malaysian Government from 1 June 2021 to 13 September 2021. STM Lottery conducted 96 draws in the current period under review, as compared to 129 draws in
the previous year’s corresponding period. The 35.6% drop in pre-tax profit was in line with the lower revenue recorded as well as higher prize payout in the current period under review
H.R. Owen marked revenue growth of 21.8% to RM2.24 billion from RM1.84 billion in the previous year’s corresponding period. Pre-tax profit increased 49.9% to RM77.4 million as compared to RM51.6 million in the previous year’s corresponding period. The strong demand in the used car sector as a result of continued disruptions to the supply chain of the new car
sector had primarily contributed to the improved performance during the current period under review. Dividend The Board has declared a third interim dividend of 2.0 sen per share in respect of the financial year ending 30 June 2022 and payable on 22 July 2022. The entitlement date has been fixed on 30 June 2022.
Based on 1.34 billion fully paid ordinary shares in issue with voting rights as of 22 May 2022, the third interim dividend distribution for the financial year ending 30 June 2022 will amount to RM26.8 million. With this, the total dividend distribution for the 9-month financial period ended 31 March 2022 is approximately RM53.6 million, representing about 46.6% of the attributable profit of the Group for the 9-month period ended 31 March 2022.