Sports Toto Berhad reported a 29.6% increase in revenue to RM1.46 billion from RM1.13 billion in the corresponding quarter of the previous year with pre-tax profit increasing 67.9% to RM82.6 million from RM49.2 million.
The strong performance achieved primarily attributed to higher sales contributed by its principal subsidiary, STM Lottery Sdn Bhd as well as by H.R. Owen Plc despite the luxury car dealer reporting a lower pre-tax profit in the current quarter under review.
STM Lottery registered higher revenue of 47.8% as compared to the previous year’s corresponding quarter mainly due to the higher number of draws conducted, 42 draws in the current quarter versus 28 draws in the previous year’s corresponding quarter.
H.R. Owen registered a revenue growth of 17.1% in the current quarter to RM774.3 million from RM661.4 million reported in the corresponding quarter of the previous year, mainly due to higher sales from both the new and used car sectors with the gradual recovery in supply volume following the easing of the supply chain disruption. Its pre-tax profit decreased by 55.3% to RM11.1 million as compared to RM24.8 million in the previous year’s corresponding quarter mainly due to the higher operating expenses incurred in the current quarter
For the financial year ended 30 June 2022, the Group reported an 8.4% increase in revenue to RM5.23 billion from RM4.83 billion in the previous financial year, mainly due to stronger sales registered by H.R. Owen, though this was partly reduced by the lower revenue reported by STM Lottery. The Group’s pre-tax profit dropped by 3.7% following the lower results reported by STM Lottery.
For the current financial year under review, STM Lottery’s revenue decreased by 5.3% with the cancellation of 37 draws due to the MCO 3.0 implemented by the Malaysian Government from 1 June 2021 to 13 September 2021. STM Lottery only conducted 138 draws in the current financial year under review, as compared to 157 draws conducted in the previous financial year. The 16.0% decrease in pre-tax profit was in line with the lower revenue recorded coupled with the higher prize payout in the current financial year under review.
H.R. Owen posted strong revenue of RM3.02 billion, representing a growth of 20.5% from RM2.50 billion in the previous year. Pre-tax profit increased by 13.9% to RM87.1 million as compared to RM76.4 million in the previous financial year. The improved performance was driven by a combination of strong demand with gradual supply volume recovery, as well as price-mix tailwinds leading to strong used car profit margins as a result of the earlier supply chain disruption in the new car sector.
Dividend
The Board has declared a fourth interim cash dividend of 3.0 sen per share and a share dividend distribution of approximately 11.16 million treasury shares on the basis of 1 treasury share for every 120 existing ordinary shares held (fractions of treasury shares to be disregarded) in respect of the financial year ended 30 June 2022. The total fourth interim dividend comprising cash and share dividend distribution for the financial year ended 30 June 2022 will amount to RM62.8 million. With this, the total dividend distribution for the financial year ended 30 June 2022 is approximately RM116.4 million
