Berjaya Sports Toto suffered 17% decline in Q4 earnings

Berjaya Sports Toto Bhd, controlled by billionaire Tan Sri Vincent Tan, suffered a 17 per cent decline in fourth quarter net profit, mainly due to higher operating expenses.

For the fourth quarter ended April 30, 2013, the company registered a net profit of RM75.63 million, versus RM91.21 million same quarter a year ago. Revenue rose 1.6 per cent to RM930.97 million during the quarter.

According to Berjaya Sports Toto in its filing to Bursa Malaysia, the lower earnings is mainly due to "higher operating expenses incurred by the group as well as the results of Berjaya Philippines Inc" (BPI).

During the quarter, BPI posted a decline in revenue and pre-tax profit of 9 per cent adn 33.5 per cent respectively, due to lower lease rental income earned as a result of lower sales reported by the Philippine Charity Sweepstakes Office.

For the full year, net profit fell by 5 per cent at RM384.98 million, compared to RM405.48 million a year ago. Revenue gained marginally to RM3.63 billion versus RM3.60 billion last year.

"The lower profit was mainly due to higher operating expenses incurred by the group... The decrease, however, was mitigated by the gain on disposal of certain quoted investments in the current year under review," said the company.

Good news is that Sports Toto, the company's principal subsidiary, posted an increase in both sales and pre-tax profit of 2.1 per cent and 13.3 per cent respectively.

"This was mainly attributed to the current quarter benefiting from the traditionally higher sales during the Chinese Lunar New Year festive season coupled with higher number of draws.

"The increase in pre-tax profit was also attributed to lower prize payout in the current quarter under review," said Berjaya Sports Toto in the statement.

Berjaya Sports Toto shares on Bursa Malaysia rose 3 sen to RM4.29 a piece, with more than 250,000 shares changed hands.