KUALA LUMPUR (Aug 22): Number forecast operator (NFO) Sports Toto Bhd (KL:SPTOTO) reported a 40.3% year-on-year (y-o-y) decline in net profit for the fourth financial quarter ended June 30, 2025 (4QFY2025), amid weaker contributions from its UK automotive dealership and a sharp rise in investment-related expenses.

Net profit for the quarter dropped to RM40.35 million, from RM67.59 million a year earlier, according to a filing with Bursa Malaysia on Friday.

Earnings per share (EPS) fell to 3.03 sen from 5.01 sen a year ago.

Quarterly revenue slipped 1.3% to RM1.63 billion, compared with RM1.65 billion in 4QFY2024, primarily due to a 4.1% decline in sales at UK-based subsidiary HR Owen plc, following weaker new car volumes and changes in product cycles.

Investment-related expenses surged nearly fourfold to RM24.69 million, from RM6.57 million in 4QFY2024, driven by impairments related to overseas associates.

On a quarter-on-quarter (q-o-q) basis, Sports Toto's net profit fell 61.8% from RM105.66 million, while revenue declined 14.5% from RM1.91 billion, in line with fewer draws in the NFO segment and the softer UK performance.

The group’s operating margin narrowed to 5.53% in 4QFY2025, from 7.15% a year earlier and 8.74% in the previous quarter. Finance costs rose 6.7% y-o-y to RM23.65 million, but declined 2.5% q-o-q.

For the full FY2025, net profit increased 8.7% to RM237.01 million, while revenue rose 1.7% to RM6.46 billion. Full-year EPS improved to 17.66 sen, from 16.30 sen in FY2024.

Sports Toto's operating margin improved to 6.66%, from 6.3% a year earlier. Finance costs were reduced by 4.5% to RM92.36 million.

The group declared a fourth interim dividend of two sen per share, payable on Oct 17. This brings the total dividend payout for FY2025 to eight sen, down from 10 sen in FY2024.

Looking ahead to FY2026, Sports Toto said it remains cautiously optimistic, citing continued consumer interest in jackpot and digit games, despite ongoing global economic uncertainties and foreign exchange risks.

“The directors are confident that the group will maintain its market leadership in the legalised NFO sector. Business prospects are expected to remain positive in the coming financial year,” the group said.

Shares of Sports Toto closed down three sen or 2.1% at RM1.46 on Friday, giving the group a market capitalisation of RM1.97 billion. The stock has fallen 2.67% so far this year.