PETALING JAYA: Sports Toto Bhd (SPToto) reported revenue of RM1.52 billion for the third quarter ended March 31, 2026 (Q3’26), a decrease of 20.5% compared with RM1.91 billion posted in the previous year’s corresponding quarter.
The group’s pre-tax profit for Q3’26 was lower by 40.8% to RM87.3 million in the current quarter under review, from RM147.5 million in the corresponding quarter last year.
This was mainly attributed to the performance of STM Lottery Sdn Bhd and H.R. Owen Plc.
For Q3’26, STM Lottery recorded lower revenue by 20.5% compared to the previous year’s corresponding quarter which benefitted from stronger sales driven by higher accumulated jackpot from the Supreme Toto 6/58 game. There were fewer draws conducted in the current quarter – 41 draws compared with 42 draws in the previous corresponding quarter. Pre-tax profit dropped by 24.7% in line with the lower revenue.
HR Owen’s revenue for the current quarter eased 17.8% compared with the corresponding quarter last year, primarily attributed to lower sales volume in both new and used car sectors.
The softer car sales performance was mainly due to longer vehicle product life cycles and transition gaps between new models launches. Cautious consumer spending amid the ongoing economic uncertainties also contributed the softness in sales.
When translated into ringgit, the group’s reporting currency, revenue reduction was 21.6% due to unfavourable foreign exchange effect. It reported a lower pre-tax profit of RM0.3 million for the current quarter, compared to RM17.9 million in the corresponding quarter last year.
This was mainly attributed to the reduction in revenue during the current quarter under review, coupled with higher statutory employment costs arising from the newly implemented labour regulations in the United Kingdom.
For the cumulative nine-month period ended March 31, 2026, the group’s revenue fell by 7.1% to RM4.49 billion from RM4.83 billion in the previous year’s corresponding period, while pre-tax profit dropped 30.7% to RM206.8 million from RM298.5 million in the previous year’s corresponding period, due to softer performances of STM Lottery and HR Owen.
STM Lottery posted a drop in revenue of 5.5% for the current period compared with the previous year’s corresponding period. The lower sales were largely attributed to higher sales in the previous year’s corresponding period driven by higher accumulated jackpot, particularly from the Supreme Toto 6/58 game. Pre-tax profit dropped by 15.7%
following the decrease in revenue coupled with higher prize payout in the current period under review.
HR Owen recorded a 6.5% drop in revenue during the current period, mainly resulting from lower sales volume in the new car segment primarily attributed to the extended vehicle product life cycles, which has unusually stifled the model mix.
Customers have also reined in their luxury spending amidst the protracted economic volatility. When translated into ringgit, the revenue recorded a drop of 9% due to unfavourable foreign exchange effect.
HR Owen reported a pre-tax loss of RM24.7 million for the period under review, compared to a pre-tax loss of RM1.4 million in the previous year’s corresponding period, mainly due to lower sales with margin pressure and higher operating expenses, particularly attributed to increased statutory employment costs associated with the newly implemented UK labour regulations.
The board has declared a third interim dividend of 3 sen per share, amounting to about RM39.53 million, for the financial year ending June 30, 2026. The dividend is payable on July 1 and the entitlement date is set on June 30. The total dividend distribution for the financial period ended March 31, 2026 is about RM105.58 million.
The directors of SPToto remain cautiously optimistic that the group’s business will remain stable and resilient. The Number Forecast Operation (NFO) business is expected to grow sustainably, driven by the popularity of its jackpot and digit games.
The directors remain confident that SPToto will continue to maintain its leading market position in the legalised NFO business sector.
Despite the ongoing geopolitical conflicts and global economic uncertainties, the group’s businesses are anticipated to continue delivering stable and positive outlook for the remaining quarter of the financial year ending June 30, 2026.
