Friday, December 10, 2010

#Flash* Berjaya Sports Toto 2Q earnings fall 36% on higher duties, payout

KUALA LUMPUR: BERJAYA SPORTS TOTO BHD [] saw its earnings fall 36% to 65.08 million for the second quarter ended Oct 31 from RM102.54 million a year ago as it bore the brunt of higher pool betting duty and higher prize payout.

It said on Friday, Dec 10 revenue slipped 1.3% to RM845.79 million from RM857.10 million a year ago. Earnings per share were 4.87 sen versus 7.62 sen. It declared a dividend of four sen a share.

'Sports Toto, the principal subsidiary, recorded a decrease in revenue and pre-tax profit of 2.1% and 39.2% respectively as compared to previous year corresponding quarter,' it said.

The decline in revenue was due to a lower number of draws while the drop in pre-tax profit was mainly due to the increase in pool betting duty from 6% to 8% with effect from June 1, 2010 coupled with higher prize payout compared to a year ago, BToto said.

It said for the first half, the group recorded a marginal drop in revenue of 0.1% and a decrease in pre-tax profit of 32.2% when compared to the previous corresponding period.

BToto said the decline was due to higher pool betting duty and higher prize payout and also higher finance cost.


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