Berjaya Sports activities Toto’s 2Q revenue drops 18%, proposes one sen dividend and title change

KUALA LUMPUR (Feb 22): Berjaya Sports activities Toto Bhd’s internet revenue for its second quarter ended Dec 31, 2021 (2QFY22) has declined by 18.14% to RM53.26 million from RM65.06 million in 2QFY21, because of decrease contribution from its numbers forecast operation (NFO), partially mitigated by increased revenue from its auto retailing enterprise.

The group, which is proposing to drop the “Berjaya” model title from its title to Sports activities Toto Bhd, recorded a income of RM1.25 billion for the quarter, up a marginal 0.9% from RM1.23 billion a yr prior. Earnings per share (EPS) for the quarter slipped to three.97 sen from 4.84 sen beforehand, its bourse submitting confirmed.

For the six months ended Dec 31, 2021 (1HFY22), Berjaya Sports activities Toto’s internet revenue sank 73.22% to RM35.59 million from RM132.92 million in 1HFY21, whereas income dropped 20.8% to RM2.04 billion, from RM2.58 billion. EPS fell to 2.65 sen from 9.92 sen.

Berjaya Sports activities Toto mentioned its NFO enterprise underneath STM Lottery Sdn Bhd (beforehand Sports activities Toto Malaysia Sdn Bhd) suffered a 50.3% decline in income for 1HFY22, primarily because of the nationwide lockdown imposed by the federal government from June 1 to Sept 13, 2021, which noticed 37 attracts cancelled.

Its auto retail enterprise, HR Owen Plc, then again, noticed income rise 11.4% to RM1.35 billion on increased gross sales from the used automotive sector, because it capitalised on the continued provide scarcity and beneficial international alternate charges.

Berjaya Sports activities Toto declared a second interim dividend of 1 sen per share for the quarter, to be paid on April 22 with an ex-date of March 30. This raised its dividend payout for 1HFY22 to 2 sen per share or about RM26.8 million — representing about 75.4% of its internet income for the interval — down 4.5 sen from 1HFY20’s 6.50 sen dividend payout.

On prospects, Berjaya Sports activities Toto’s administrators mentioned they’re cautiously optimistic that its enterprise will progressively recuperate with the resilient nature of the NFO enterprise, as seen in previous financial crises and turbulent intervals.

“Barring any unexpected circumstances, the administrators are assured it’ll preserve its lead by way of market share within the NFO enterprise for the monetary yr ending Jun 30, 2022, in step with the restoration of the NFO business when the general financial system improves,” the group added.

Berjaya Sports activities Toto shares closed 4 sen or 2.04% decrease at RM1.92 on Tuesday, valuing the group at RM2.58 billion. It at present trades at 26.98 occasions earnings, whereas its dividend yield stood at 2.60%, primarily based on Bloomberg information.