PETALING JAYA: Sports Toto Bhd (SPToto) reported revenue of RM1.91 billion for the third quarter ended March 31, 2025, a climb of 12.5% over revenue of RM1.69 billion in the previous year’s corresponding quarter.
The group registered RM147.5 million pre-tax profit, a commendable improvement of 45.7% from the pre-tax profit of RM101.2 million in the corresponding quarter of the previous year.
The improved results for the quarter ended March 31, 2025 was mainly due to the strong performance of STM Lottery Sdn Bhd and improved performance of HR Owen Plc.
STM Lottery’s current quarter revenue was higher by 20.8% despite the number of draws that remained the same as in the corresponding quarter of the previous year (42 draws). This was primarily driven by an exceptional surge in the accumulated jackpot from the Supreme Toto 6/58 game. Aligned with the higher revenue achieved and further supported by a lower prize payout, its pre-tax profit rose by 45.8% in the current quarter, as compared to the corresponding quarter of the previous year.
HR Owen’s current quarter revenue raised by 14% when compared to the previous year’s corresponding quarter mainly attributed to higher sales volumes in both new and used car sectors. Sales from the new marque, Lotus, which is now represented by the company contributed to the revenue increase, while the launches of certain new models also supported the improved performance in this quarter.
When converted into ringgit, the revenue growth was only 6.9% due to the unfavourable foreign exchange effect. HR Owen’s pre-tax profit increased to RM17.9 million from RM11.3 million in the last year same quarter which aligned with the improved revenue attained.
For the nine-month period ended March 31, 2025, SPToto reported revenue of RM4.83 billion, an increase of 3.7% over the revenue of RM4.66 billion reported in the previous year’s corresponding period, mainly driven by the both STM Lottery and HR Owen.
Pre-tax profit saw an increase of 24.8% to RM298.5 million from RM239.1 million in the corresponding nine-month period of the previous year.
STM Lottery reported revenue growth of 6%, despite fewer number of draws conducted in the current period under review (123 draws versus 126 draws in the previous year corresponding period). The growth was primarily driven by a sudden surge in ticket sales from the Supreme Toto 6/58 game when its accumulated jackpot grew exceptionally in the period. In tandem with the revenue growth coupled with lower prize payout, its pre-tax profit increased by 23.6% in the period under review.
HR Owen reported an increase in revenue of 6.8% compared to the previous year’s corresponding period, supported by optimistic demand from the used car sector as well as contribution from the new marque, Lotus, which is now represented by the company. However, the unfavourable foreign exchange effect resulted in a more modest revenue increase of 2.3% when converted into ringgit. It reported a lower pre-tax loss of RM1.4 million compared to a pre-tax loss of RM4.1 million in the previous year’s corresponding period, mainly attributed to the revenue growth as well as lower finance cost incurred following the interest rate reduction in the UK.
The board has declared a third interim dividend of 2 sen per share, amounting to about RM26.7 million for the financial year ending June 30 2025. The dividend is payable on July 18 and the entitlement date is fixed on June 30.
With this, the total dividend distribution for the financial period ended March 31, 2025 is about RM80.3 million.
The directors remain cautiously optimistic that the group’s business will remain stable and resilient. The number forecast operation (NFO) business is expected to continue its upward trajectory of per draw sales growth driven by favourable consumer spending and continued consumer interest in the jackpot games. Further with regard to the closure of legal NFO outlets in the two northern states (Kedah and Perlis), the directors are concerned with the continued encroachment of illegal operators in these underserved areas.
Despite the prevailing uncertainties and global economy headwinds including trade protectionism and the inflationary tariff impact, the directors are confident that the group will continue its lead in terms of the market share in NFO market and the group’s businesses are expected to be encouraging and maintain a positive outlook for the remaining quarter of financial year ending June 30, 2025.
