KLIA: Sports Toto Bhd reported revenue of RM1.65 billion for the fourth quarter ended June 30, 2024 (Q4’24), up 2.1% from RM1.62 billion in the corresponding quarter of the previous financial year.

The Group recorded profit before tax of RM104.2 million, representing a 9.6% improvement over profit before tax of RM95 million in the corresponding quarter of FY23.

The improved results for the quarter ended 30 June 2024 were mainly due to the improved performance of the Group’s key subsidiary, STM Lottery Sdn Bhd.

STM Lottery reported stronger revenue growth of 9.8% for the fourth quarter of 2024, mainly due to higher revenue per draw and one additional draw compared to the corresponding quarter last year (41 draws versus 40 draws). Profit before tax increased by 47.6% due to higher revenue and lower prize payouts.

Meanwhile, HR Owen plc, the group’s luxury car division, reported a 5.1% decline in revenue in the fourth quarter of 2024 compared to the same quarter last year, mainly due to lower sales volumes resulting from the retirement of models that had reached the end of their product life cycle.

However, due to a favourable foreign exchange impact, HR Owen’s revenue decreased by only 0.1% when converted into ringgit, the group’s reporting currency. Profit before tax was lower at RM17.6 million from RM22.8 million in the corresponding quarter last year, due to higher operating costs and depreciation that will be incurred following the completion and full operation of the Hatfield Centre in May 2023.

For the full financial year ended June 30, 2024, Sports Toto reported revenue of RM6.3 billion, up 3.4% from RM6.1 billion in FY2023. The group’s profit before tax also increased by 1.2% to RM343.3 million compared to profit before tax of RM339.3 million in the previous year, mainly due to improved performance of STM Lottery, but partially offset by lower results from HR Owen.

STM Lottery reported year-on-year increases in revenue and pre-tax profit of 4.3% and 29.6%, respectively, despite fewer draws being conducted (167 draws versus 175 draws). The increase in revenue was due to higher revenue per draw driven by higher cumulative jackpot winnings, while the jump in pre-tax profit was in line with revenue growth and lower prize payouts for the year.

HR Owen’s revenue for the financial year ended 30 June 2024 decreased by 3.3% year-on-year, mainly due to lower car sales due to the retirement of certain models, as well as the negative impact of difficult economic conditions in the United Kingdom (UK). However, thanks to favourable foreign exchange rates, the company recorded a 5% increase in revenue when converted to ringgit. HR Owen recorded lower profit before tax of RM13.5 million compared to RM41.2 million in the previous year. This was mainly due to higher operating costs associated with higher depreciation following the completion and full operation of the Hatfield Centre, as well as the impact of UK interest rate hikes.

The board of Sports Toto has declared a fourth interim dividend of two sen per share for the financial year ending June 30, 2024. The dividend amount is RM27 million, payable on October 18, and the claim date has been set for October 2.

This brings the total dividend payout for the financial year to 10 sen per share, or approximately RM134 million.

Sports Toto’s management is cautiously optimistic that the Group’s business will remain stable. The Directors believe that, despite subdued growth in the global economy, the Group’s business prospects will remain positive and stable for the financial year ending 30 June 2025.