KUALA LUMPUR (Feb 23): Sports Toto Bhd said on Friday that its net profit shrank 63% in the second quarter from a year earlier, due to lower sales at both its lottery and luxury car businesses, as well as higher operating costs.

Net profit for the three months ended Dec 31, 2023 (2QFY2024) was RM24.22 million compared to RM64.86 million over the same period a year earlier (2QFY2023), Sports Toto said in an exchange filing. Revenue for the quarter slipped 2.85% year-on-year to RM1.37 billion from RM1.41 billion.

Sports Toto said the company is optimistic that its number forecast business will continue its “upward trajectory” in per-draw sales growth, driven by favourable consumer spending during the festive period and continued interest in jackpot games.

However, the company noted that the closure of outlets in Kedah and Perlis due to state government policy will lead to the encroachment of illegal operators.

Sports Toto declared a second interim dividend of two sen per share, representing a total distribution of RM27 million, payable on April 19.

By segment, profit before tax at its mainstay lottery unit declined 16.5% on lower sales, coupled with higher prize payout and operating expenses. Meanwhile, pre-tax loss at its luxury car unit widened to RM15.8 million versus RM800,000, on lower sales and higher costs.

Meanwhile, for the six months ended Dec 31, 2023 (6MFY2024), Sports Toto’s net profit dropped 38.12% to RM84.38 million, as compared with RM136.35 million in the same period a year ago. Half-year topline rose 4.8% to RM2.96 billion, versus RM2.83 billion previously.

Shares in Sports Toto ended unchanged at RM1.52 on Bursa Malaysia on Friday, giving the group a market capitalisation of RM2.05 billion, ahead of its results announcement.