This article first appeared in The Edge Financial Daily on August 20, 2019

KUALA LUMPUR: Berjaya Sports Toto Bhd (BToto) posted a net loss of RM41.38 million for the two months ended June 30, 2019 — its first loss-making period in 15 years since 2004 — mainly due to a RM78.43 million impairment of goodwill and assets.

The group said in a stock exchange filing yesterday that without “the impairment of goodwill and assets of the disposal group of leasing of lottery equipment business in the Philippines” that was included under its investment-related expenses, it would have registered a pre-tax profit of RM51.6 million for the period.

The Philippine Gaming Management Corp, which ceased to be its indirect unit following a stake dilution  by Berjaya Philippines Inc in July, is presented as the disposal group in the reporting period and classified as discontinued operation.

BToto’s revenue for the quarter came in at RM974.92 million, mainly contributed by sales from the number forecast operator (NFO) business at Sports Toto Malaysia Sdn Bhd and the auto retailing business operated by HR Owen plc.

No comparative figures were provided as the group has changed its financial year end (FYE) from April 30 to June 30, to coincide with the new FYE of its holding company, Berjaya Land Bhd.

Its net profit for the 14 months ended June 30 came in at RM235.05 million, on a revenue of RM6.7 billion.

Going forward, BToto directors expect the performance of its principal subsidiary, Sports Toto, to be satisfactory and are confident that the group will continue to maintain its market share in the NFO business for the financial year ending June 30, 2020.