KUALA LUMPUR (Aug 23): Sports Toto Bhd (KL:SPTOTO) posted a net profit of RM67.6 million for the fourth quarter ended June 30, 2024 (4QFY2024), up 8.4% from RM62.3 million a year ago, driven by a stronger performance of its principal subsidiary, STM Lottery Sdn Bhd.
Earnings per share improved to 5.01 sen from 4.63 sen previously, according to the group in a bourse filing on Friday.
Quarterly revenue increased 2.1% year-on-year to RM1.65 billion from RM1.62 billion.
STM Lottery reported a 9.8% revenue growth, mainly due to higher sales per draw and an increase in the number of draws to 41 from 40 previously. Pre-tax profit rose 47.6% due to increased revenue and lower prize payouts.
Meanwhile, the group's luxury car unit, HR Owen plc, saw a 5.1% decline in revenue due to lower car sales and the end of some model lines. Pre-tax profit decreased to RM17.6 million from RM22.8 million in 4QFY2023, primarily due to higher operating costs and depreciation from the Hatfield centre’s full operation.
Sports Toto proposed a fourth interim dividend of two sen per share, down from 2.5 sen a year earlier, payable on Oct 18. This brings total dividends for FY2024 to 10 sen, up from nine sen in the previous year.
For FY2024 as a whole, Sports Toto's net profit decreased 2.2% to RM220.4 million from RM225.3 million in the previous year, due to higher income tax expenses and finance costs, despite a 3.4% increase in revenue to RM6.31 billion from RM6.1 billion.
Looking ahead, Sports Toto said it is cautiously optimistic about maintaining business stability, despite the closure of legal number forecast operator outlets in Kedah and Perlis, which may lead to more illegal operators.
"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.
Shares in Sports Toto closed one sen or 0.62% lower at RM1.59 on Friday, giving the group a market capitalisation of RM2.15 billion.