The Edge Daily

Berjaya Sports Toto Bhd (BToto) posted a 20.5% jump in net profit to RM117.34 million for the third quarter to Jan 31, 2007 from RM97.4 million a year ago despite a marginally lower revenue of RM770.98 million.

Earnings per share rose to 9.06 sen from 7.74 sen. BToto has declared a third interim gross dividend of 12.5 sen per share less tax or about RM118 million, bringing the total dividend to 37.5 sen per share or RM352.7 million. The dividend will be paid on April 9.

For the nine-month period, BToto's revenue increased 2.7% to RM2.2 billion but group pre-tax profit declined 9.4% to RM396.7 million from RM437.6 million a year ago on higher prize payout.

BToto said interest income in the third quarter was lower due to a substantial reduction of inter-company balance from Berjaya Land Bhd and distribution of surplus funds to BToto's shareholders via capital repayments and dividend payments.

The pre-tax profit of its principal subsidiary Sports Toto Malaysia Sdn Bhd rose 5.9% to RM146.9 million despite a 1.6% decline in revenue due to lower prize payout.

"The drop in revenue was mainly due to the current quarter having one less draw and the seasonally higher Chinese Lunar New Year sales falling in the previous corresponding quarter ended Jan 31, 2006," it said on March 7.

Other factors for the lower pre-tax profit were the finance costs in the nine-month period and recognition of a RM24 million gain on disposal of the company's irredeemable cumulative loan stocks (ICULS) in the previous corresponding period.