KUCHING: Number forecast operators (NFOs) such as Berjaya Sports Toto Bhd (Berjaya Sports Toto) were likely to lobby for a reduction in the 4D prize pool for the secondary prizes and not for the first prize.RHB Research Institute Sdn Bhd (RHB Research) in its research report yesterday premised this on the view that a reduction in the first pool prize was likely to result in a reduction in sales volume, as the most important indicator for punters to decide on their bets was usually the size of the first prize and not the secondary prizes.
This, it noted, was following the two per cent price hike in pool betting duty announced on July 1 this year, with the NFOs in discussions with one another to decide on the next course of action.
It was highlighted that when hit by any regulatory changes, the NFOs would reach a consensus on how to tackle the issues at hand and then approach the government together.
Looking at sales, RHB Research was now reducing its sales per draw growth assumption for the group to five per cent for the financial year 2011 to reflect the management’s more conservative outlook of four to six per cent.
However, it was highlighted that Berjaya Sports Toto’s sales to draw ratio for its lotto games in the first two months for the financial year ending April 2011 (FY04/11) grew by 19.1 per cent year-on-year, on the back of higher of higher revenue contributions from the new game.
RHB Research underscored several risks faced by the group, among which included poor luck factor causing high prize payout ratios, more regulatory changes for the NFO industry to discouraging gambling in the country and hike in gaming taxes.
Taking this into account, the research house maintained a fair value of RM4.35 per share for Berjaya Sports Toto, given the estimated six to seven per cent per annum dividend yield.
by Borneo Post
No comments:
Post a Comment