Sports TOTO Malaysia full year revenue increased to RM6.09 billion comparedd to RM5.22 billon the group achieved in 2022. Profit before tax for the period rose from RM273 million to RM337 million.
The topline earnings were mainly contributed from improved sales from STM Lottery and higher share of associated companies’ profits but partially set off by H.R. Owen’s lower results recorded in the current year under review as explained in the ensuing paragraphs. STM Lottery registered increase in revenue and pre-tax profit of 32.1% and 30.7% respectively as compared to the previous year. The group said the improved sales was primarily attributed to the full resumption of business operation in the current year ended 30 June 2023 whilst the previous year business operations were adversely affected following the cancellation of thirty seven draws with the imposition of nationwide lockdown. In addition, the strong sales achieved was also driven by higher accumulated jackpot prizes from jackpot games during the current year under review. The higher pre-tax profit in the current year was in line with improved revenue achieved.
On the other hand, H.R. Owen reported revenue growth of 2.7% in the current year ended 30 June 2023 as compared to the previous year. In spite of the increase in revenue, H.R. Owen’s pre-tax profit dropped by 56.3% to RM38.6 million in the current year from RM88.3 million in the previous year. The outstanding performance recorded in the previous year benefitted from the exceptionally strong demand in used car leading to strong used car profit margin as a result of new car supply constraints. Its current year pre-tax profit was impacted by higher operating costs as a result of inflationary pressures and higher finance costs arising from interest rate hike during the current year under review
The Group registered a drop in revenue of 2.3% compared to the preceding quarter mainly due to lower sales reported by STM Lottery but partially mitigated by improved revenue contributed by H.R. Owen. The Group’s pre-tax profit increased by 137.8% primarily attributed to improved results reported by STM Lottery and H.R. Owen as explained in the ensuing paragraphs.
As compared to the preceding quarter ended 31 March 2023, STM Lottery’s revenue declined 10.6% as a result of lower number of draws conducted during the current quarter. The preceding quarter also benefitted from stronger sales arose from stronger customer sentiment during the festive period in the month of January 2023. Its pre-tax profit increased by 132.8% mainly attributed to lower prize payout during the current quarter under review.
