BToto 4Q earnings down 24% on-year

BERJAYA SPORTS TOTO BHD [] (BToto) posted net profit of RM83.08 million for the fourth quarter ended April 30, 2010, down 24.3% from RM109.82 million a year ago following a decline in  revenue from its principal subsidiary, Sports Toto Malaysia Sdn Bhd.

BToto said on Friday, June 18 pre-tax profit decreased to RM117.3 million from RM150.8 million while revenue dipped 1.6% to RM858.3 million from RM870.3 million mainly due to slightly lower revenue.

It said Sports Toto, which registered a decrease in pre-tax profit of 17.9% compared to the slight drop in its revenue of 1.6% as a result of higher prize payout in the 4Q.

The lower pre-tax profit was also due to higher finance cost and its subsidiary, Prime Gaming Philippines, Inc., registering lower revenue and pre-tax profit from a year ago.

The board recommended a second interim single tier exempt dividend of eight sen per share payable on July 16. The entitlement date is July 6.

For the financial year, BToto net profit fell 8.4% to RM386.41 million from RM422.02 million.
Revenue dipped 8.2% to RM3.39 billion from RM3.69 billion in the previous financial year mainly due to Sports Toto's results as well as higher group finance cost.

For the financial year, Sports Toto saw revenue and pre-tax profit decline 8.6% and 5% respectively due to the high base effect of the previous year which experienced strong sales from high jackpots in the Mega 6/52 game.

"However, the lower drop in pre-tax profit was mainly attributable to the lower prize payout in the current year under review," it said.

BToto said total net cash dividend distribution for the current year amounting to RM345.6 million represented about 90.5% of the group's attributable earnings. Including the share dividend, the total dividend distribution would amount to 57.93 sen per share for the year.

"The board remains committed to the company's dividend policy of distributing at least 75% of its annual net earnings to shareholders," it said.
 


Written by Joseph Chin