Petaling Jaya: Sports Toto Bhd (SPToto) reported revenue of RM1.44 billion for the first quarter ended September 30, 2024, down 9.5% compared to revenue of RM1.59 billion in the same period last year.
The group’s pre-tax profit for the quarter was RM68.4 million, down 23.8% from RM89.8 million in the same period last year.
For the quarter ended September 30, 2024, STM Lottory Sdn Bhd noted that there were fewer draws conducted during the quarter (40 draws compared to 42 draws in the corresponding quarter last year) and the cumulative amount The company reported weak revenue of 9.5% due to a decrease in average sales per drawing due to a decrease in sales. Jackpot prizes for the current quarter.
The 7% decrease in pre-tax earnings was due to lower registered sales, partially offset by lower awards in the quarter.
HR Owen Plc reported a 6.3% decrease in revenue compared to the same period last year. Unfavorable foreign exchange effects when translated into the Group’s reporting currency, Ringgit, resulted in a significant 8.3% decline in sales.
The decline in sales was due to lower unit sales in the new car sector due to the impact of the product life cycle of car models, the phasing out of certain models, and manufacturers’ efforts to redesign electrification and hybrid vehicles. This may be the cause.
In addition, difficult economic conditions and uncertain sentiment in the UK following the general election in July also slowed sales in the quarter. As a result of the above factors, profit margins were compressed due to intense price competition due to an oversupply of cars from certain manufacturers. As a result, HR Owen posted a pre-tax loss of RM11.2 million compared to a pre-tax profit of RM400,000 in the same period last year, reflecting the combined impact of lower sales and margin compression.
The Board of Directors announced that the first interim dividend for the financial year ending June 30, 2025 will be 2 sen per share, totaling approximately RM27 million. The dividend will be paid on January 17, 2025, and the vesting date will be fixed at December 31, 2024.
SPToto management is cautiously optimistic that the group’s business will survive
Stable. The closure of legal Number Forecast Operator outlets in two northern states, namely Kedah and Perlis, will lead to the proliferation of illegal operators in these underserved areas. SPToto is hopeful that legal due process will prevail and STM Lottory will be able to re-establish its presence in these states.
Despite the uncertainties and global economic headwinds, the directors are of the view that the Group’s business outlook remains positive and stable for the remaining quarters of the financial year ending 30 June 2025. .
