KUALA LUMPUR (May 24): Sports Toto Bhd (KL: SPTOTO) said on Friday that its earnings almost tripled in its third financial quarter ended March 31, 2024 (3QFY2024) on the back of improved performance by the group's principal subsidiary STM Lottery Sdn Bhd and luxury cars retailer HR Owen plc.

Net profit for 3QFY2024 stood at RM68.45 million compared with RM23.22 million in the previous year's corresponding quarter, Sports Toto said in an exchange filing. Revenue inched up 2.4% to RM1.69 billion from RM1.66 billion.

The group said the improved results reported by STM Lottery was attributed to the traditionally stronger sales during the festive period in February 2024, as well as lower prize payout in the quarter.

Meanwhile, HR Owen's improved results were mainly attributed to higher volume of cars sold from both new and used car sectors that benefitted from the number plate change month, despite the backdrop of the on-going challenging economic conditions in the UK.

Looking ahead, Sports Toto said the management is cautiously optimistic that its business will remain stable. However, the group noted that the closure of legal numbers forecast operators (NFO) outlets in Kedah and Perlis due to state governments' policy will result in the proliferation of illegal operators in these underserved areas.

"The management will endeavour to develop sustainable business models within legislative guidelines to meet the group’s economic, environmental and sustainable goals in serving the community and the nation," the group said in a separate statement.

"The directors are of the view that despite the dampened recovery of the global economy, the group’s business outlook will remain positive and stable for the remaining quarter of the financial year ending June 30, 2024 given the nature of its business," Sports Toto added.

The group declared a third interim dividend of three sen per share, amounting to RM40.5 million, payable on July 19. This brings the total dividend declared for FY2024 so far to eight sen per share, versus 6.5 sen for the same period in the previous year.

For the first nine months of FY2024, Sports Toto’s net profit dropped 4.2% to RM152.83 million from RM159.58 million in the same period a year ago. Nine-month topline rose 3.9% to RM4.66 billion from RM4.48 billion previously.

Shares in Sports Toto ended two sen or 1.27% lower at RM1.555 on Friday, giving the group a market capitalisation of RM2.1 billion, ahead of its results announcement.