PETALING JAYA: Berjaya Sports Toto Bhd (BToto) registered a 40.7% decrease in revenue to RM797.6 million in the first quarter ended Sept 30, 2021 compared with RM1.35 billion in the corresponding quarter of the previous year, mainly due to an 88.7% drop in revenue recorded by principal subsidiary Sports Toto Malaysia Sdn Bhd as there were only eight draws conducted in the quarter compared with 42 draws in the corresponding quarter of the previous year.
Following the nationwide lockdown and subsequent National Recovery Plan, 37 draws were cancelled in the current quarter as all sales outlets were closed from June 1, 2021 to Sept 13, 2021, and were only allowed to resume business on Sept 14, 2021.
The drop in the results was primarily due to the cancelled draws and fixed operating expenses incurred in the quarter, and led to the group posting a pre-tax loss of RM12.4 million compared with a pre-tax profit of RM101.4 million in the corresponding quarter of the previous year.
HR Owen Plc registered an increase of 6.0% in revenue to RM707.1 million from RM667.2 million in the corresponding quarter of the previous year, while pre-tax profit increased by 39.6% to RM25.6 million in the current quarter from RM18.4 million in the corresponding quarter of the previous year.
The improved results were mainly due to higher sales and a better profit margin generated from the used-car sector as a result of the change in marketing strategy and additional resources invested to capitalise on the stronger used-car market due to supply shortage. The improvement was also due to the favourable foreign exchange effect of converting pound sterling into ringgit in the quarter under review.
The board has declared a first interim dividend of 1 sen per share amounting to RM13.4 million in respect of the financial year ending June 30, 2022 and payable on Jan 5, 2022. The entitlement date has been fixed on Dec 17, 2021.
“The business environment is expected to recover gradually as more economic and social sectors reopen with the easing of restrictions by the respective governments of the countries where the group’s subsidiary companies operate. In this regard, the directors are cautiously optimistic that the group’s businesses will gradually recover with the resilient nature of the number forecast operator (NFO) business as noted in the past economic crises and turbulent periods,” BToto said in a statement.
Barring any unforeseen circumstances, the directors are confident that the group will continue to lead in terms of market share in the NFO business for the financial year ending June 30, 2022.