Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 19): Berjaya Sports Toto Bhd's (BToto) net profit fell 18.9% to RM58.74 million or 4.36 sen a share for its first financial quarter ended July 31, 2016 (1QFY17) from RM72.47 million or 5.39 sen a share a year ago, mainly due to the results of H.R. Owen Plc as well as the foreign exchange effect recognised by a foreign subsidiary company during the current quarter under review.

This was partially offset by the improved results reported by its principal subsidiary Sports Toto Sdn Bhd.

Revenue grew 8.2% to RM1.44 billion in 1QFY17 from RM1.33 billion in 1QFY16, mainly attributed to the results of Sports Toto and H.R. Owen.

The gaming firm also declared a first interim dividend of 4 sen per share for the financial year ending April 30, 2017 (FY17), payable on Oct 18. This amounts to RM53.9 million, representing 91.8% of the group's net profit for 1QFY17. The entitlement date has been fixed on Oct 7.

In a statement today, BToto said H.R. Owen's pre-tax profit for 1QFY17 fell to RM6.9 million from RM10.9 million in 1QFY16 due to higher operating expenses.

It, however, registered higher revenue at RM626.1 million from RM532.9 million a year ago, mainly due to higher revenue boosted by the higher sales volume of new cars coupled with certain new models being available for sale during the current quarter.

On future prospects, BToto said the subdued economic climate and rising costs are expected to continue to dampen consumer spending.

It expects the number forecasting operating (NFO) business to be challenging for the remaining quarters of FY17 in view of the weaker consumer sentiment and increasing illegal gaming activities.

"In spite of these, the directors expect the group to maintain its market share in the NFO business. On the operation of H.R. Owen, there is no immediate material or noticeable impact on the luxury vehicles market resulting from the uncertainties of Brexit as at to date.

"However, the directors are cautious of the uncertainties that may arise from the Brexit and the impact it may have on the motor dealership segment performance for the remaining quarters of FY17," it added.

BToto shares closed down 7 sen or 2.06% at RM3.32 today, bringing a market capitalisation of RM4.48 billion.

 

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