stoto

Review of Results for the 1st Quarter ended 30 September 2024

Sports Toto Berhad (“SPToto”) reported RM1.44 billion revenue in the current quarter under review, registering a decrease of 9.5% over the revenue of RM1.59 billion in the previous year’s corresponding quarter. The Group registered a drop of 23.8% of pre-tax profit from RM89.8 million in the corresponding quarter of the previous year to RM68.4 million in the current quarter under review.

For the current quarter ended 30 September 2024, STM Lottery Sdn Bhd (“STM Lottery”) reported a softer revenue of 9.5% lower due to two lesser draws conducted in the current quarter (40 draws versus 42 draws in last year’s corresponding quarter) and lower average sales per draw with lower accumulated jackpot prizes in the current quarter. Its pre-tax profit, which dropped by 7%, was attributed to the lower sales registered but this was partially mitigated by lower prize payout in the current quarter under review.

H.R. Owen Plc (“H.R. Owen”) reported a decrease of 6.3% in revenue as compared to the previous year’s corresponding quarter. With the unfavourable foreign exchange effect when converted to Ringgit Malaysia, being the reporting currency of the Group, its revenue reported a higher drop at 8.3%. The drop in revenue was attributed to the lower sales volume from the new car sector which was impacted by the product life cycle of car models leading to the phasing out of certain current models, and manufacturers gearing towards the electrification and hybrid cars reengineering. Additionally, challenging economic conditions and uncertain sentiments in the United Kingdom following the General Election held in July 2024 had also soften the sales in the current quarter under review. The above factors had led to margin compression following the intense price competition due to oversupply of cars from certain manufacturers. As a result, H.R. Owen registered a pre-tax loss of RM11.2 million as compared to pre-tax profit of RM0.4 million recorded in the previous year’s corresponding quarter, reflecting the combined impact of reduced revenue and margin compression.

Review of Results for Current Quarter

Sports Toto Berhad (“SPToto”) reported RM1.65 billion revenue in the current quarter under review, registering an increase of 2.1% over the revenue of RM1.62 billion in the previous year’s corresponding quarter. The Group also registered RM104.2 million pre tax profit, which is an improvement of 9.6% from the pre-tax profit of RM95.0 million in the corresponding quarter of the previous year.

The improved results for the current quarter ended 30 June 2024 was mainly due to the better performance reported by the Group’s principal subsidiary company, STM Lottery Sdn Bhd (“STM Lottery”).

For the current quarter ended 30 June 2024, STM Lottery reported stronger revenue growth of 9.8% mainly attributed to higher sales per draw coupled with an additional draw conducted as compared to the previous year corresponding quarter (i.e. 41 draws versus 40 draws in the corresponding quarter). Its pre-tax profit increased by 47.6% on the back of higher revenue achieved, coupled with lower prize payout during the current quarter under review.

As for H.R. Owen Plc (“H.R. Owen”), its revenue dropped by 5.1% in the current quarter as compared to the previous year corresponding quarter, mainly attributed to lower volume of car sold from new and used car sectors which stemmed from the phasing out of certain models which have come to the end of their product life cycle. However, with the favourable foreign exchange effect, H.R. Owen’s revenue dropped marginally by 0.1% when converted into Ringgit Malaysia, being the reporting currency of the Group. Its pre tax profit was lower at RM17.6 million as compared to RM22.8 million in last year corresponding quarter resulted from higher operating costs and depreciation incurred following the completion and full operation of the Hatfield Centre in May 2023.