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Monday, June 20, 2016

BToto's 4Q profit up 35% on stronger earnings from betting biz, pays 5 sen dividend

BToto's 4Q profit up 35% on stronger earnings from betting biz, pays 5 sen dividend
By Gho Chee Yuan / theedgemarkets.com | June 20, 2016 : 7:10 PM MYT

KUALA LUMPUR (June 20): Berjaya Sports Toto Bhd (BToto) saw its net profit for the fourth quarter ended April 30, 2016 (4QFY16) gain 35.1% to RM104.71 million or 7.77 sen per share due to stronger earnings from Sports Toto Malaysia Sdn Bhd and Philippine Gaming Management Corp.

It posted a net profit of RM77.51 million or 5.72 sen per share in 4QFY15.

Quarterly revenue was up 1.4% to RM1.48 billion from RM1.46 billion a year earlier underpinned by higher revenue contribution from London-listed luxury car dealer HR Owen Plc, its bourse filing today showed.

But this was partially offset by lower revenue recorded by Sports Toto Malaysia.

It also declared a fourth interim dividend of five sen per share, amounting to RM67.4 million, payable on Aug 9.

This brings the full year dividend to 19 sen per share — compared to its total FY15 payout of 21.5 sen per share. This entails a distribution of RM255.2 million, representing 83.3% of the attributable profit of the group this year.

For the full year (FY16), its net profit was down 15.3% to RM306.18 million or 22.7 sen per share from RM361.61 million or 26.86 sen per share, while revenue grew 5.3% on year to RM5.56 billion from RM5.28 billion a year earlier.

On this, BToto said the lower earnings was dragged down by lower profits generated by Sports Toto and HR Owen, as well as the refund of RM18 million stamp duty of the share purchase agreement following the aborted listing exercise of Sports Toto Malaysia Trust recorded in the previous financial year.

"The drop in the group's pre-tax profit would have been 13.5% if the aforesaid refund of RM18 million stamp duty had been excluded," it explained.

Going forward, BToto expects the number forecast operator (NFO) business to remain challenging in view of the impact from goods and services tax, increasing illegal gaming activities and rising costs resulting from difficult economic conditions which continue to dampen consumer spending.

"Notwithstanding the above, the directors are confident the group will maintain its market share in the NFO business," it added.

Shares in BToto fell two sen or 0.68% to close at RM2.90 today, after 552,000 shares changed hands. It has a market capitalisation of RM3.91 billion.

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