Lower operating expenses at STM Lottery boost Sports Toto's net profits in Q4

In the fourth quarter of financial year 2026, Sports Toto Bhd experienced a significant surge in net profit, which rose by 55 percent to RM62.54 million, compared to RM40.35 million in the same quarter last year. This growth was mainly fueled by the improved performance of STM Lottery Sdn Bhd and a decrease in investment-related expenses.

However, the company's revenue took a dip of five percent, falling to RM1.55 billion from RM1.63 billion in the previous quarter. This decline was largely attributed to reduced sales from the new car segment of HR Owen Plc and STM Lottery itself. STM Lottery's revenue dropped by 4.5 percent, mainly due to fewer accumulated jackpot prizes and one less draw conducted during the quarter.

HR Owen's revenue also fell by 6.6 percent, primarily because of the transition gaps between new vehicle model launches and the challenging economic environment. Despite the lower revenue, the company declared a fourth interim dividend of 3.0 sen per share, equivalent to RM39.4 million, payable on October 16, 2026. For the entire fiscal year 2026, Sports Toto's net profit declined by 19 percent to RM188.9 million from RM233.94 million in the previous year, while revenue decreased by 6.8 percent to RM6.04 billion from RM6.48 billion.

Consequently, the total dividend distribution for the fiscal year amounted to 11.0 sen per share, or approximately RM145.0 million. Sports Toto expressed cautious optimism about maintaining stable and resilient business performance, highlighting the expected sustainable growth of its Number Forecast Operation (NFO) business, supported by the popularity of its Jackpot and Digit games. The company remains confident in its leading position in the legalised NFO sector.