KUALA LUMPUR (Nov 20): Sports Toto Bhd’s (KL:SPTOTO) first-quarter net profit almost halved as weaker results from its numbers forecast business offset higher group revenue.

The gaming operator posted a net profit of RM22.1 million for the quarter ended Sept 30, 2025 (1QFY2026), down 46.5% from RM41.34 million a year earlier. Earnings per share fell to 1.66 sen from 3.06 sen.

In a filing with Bursa Malaysia on Thursday, Sports Toto revealed that pre-tax profit at its core unit, STM Lottery Sdn Bhd, dropped 20.8% year-on-year in 1QFY2026, which the group attributed to higher prize payouts driven by larger accumulated jackpot prizes in its Lotto games.

Sports Toto’s UK luxury car distribution unit HR Owen plc narrowed its pre-tax loss to RM9.4 million in 1QFY2026 from RM11.5 million in 1QFY2025 on stronger revenue, supported by higher new-car sales.

Group revenue for the quarter rose 3.7% to RM1.5 billion from RM1.44 billion a year earlier, lifted by higher average sales per draw, also helped by bigger jackpot prizes.

The group declared a first interim dividend of two sen per share, amounting to RM26.56 million, for the financial year ending June 30, 2026 (FY2026), payable on Jan 16, 2026.

Sports Toto said it remains cautiously optimistic about its outlook, expecting stable performance and continued growth in its numbers forecast operations (NFO), supported with the popularity of its jackpot and digit games.

"Despite prevailing global economy headwinds and uncertainties, the group is confident that it will continue to maintain its leading market position in the legalised NFO business sector.

"Overall, the group’s businesses are expected to remain encouraging, with a positive outlook for the remaining quarters of the financial year ending June 30, 2026," it added.

Sports Toto shares closed unchanged at RM1.39 on Thursday, giving it a market capitalisation of RM1.88 billion. The stock is down 7.3% so far this year.