- Despite recording a 7.7 percent jump in revenue to RM1.3 billion for 1Q16, attributable to increased contribution form HR Owen, Berjaya Sports Toto’s net profit fell 7.5 percent to RM72.5 million, impacted by the performance of its lottery business.
- Sports Toto, the group’s principle subsidiary, recorded a 23.6 percent decline in pre-tax profit that weighed on overall bottom line, due to higher prize payout coupled with the Malaysian goods and services tax expenses absorbed.
- For the quarter, the company has declared an interim dividend of RM0.05 (1Q15: RM0.055), which consists of RM0.025 cash dividend per share and a share dividend of RM0.25 per share.
Significance: In a separate note, Hong Leong IB Research has maintained its ‘Hold’ rating on the stock and lowered its target price from RM3.59 to RM3.21 as it lowers earnings forecasts for the firm in view of the lower than expectation result and a challenging operating environment.
Contributed by Shares Investment
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