SPTOTO’s revenue declined by 14.5%. The number forecast operator (NFO) segment was weighed down by fewer draws.
Also, the third quarter of financial year 2025 (3QFY25) had benefited from a strong base, boosted by the record-breaking Supreme 6/58 Jackpot prize of RM121.7 mil (the highest in history) and Chinese New Year festivities.
For HR Owen, the revenue softness was largely dragged by weaker sales volumes in the new car segment following a demand pull-forward in Mar 2025.
In tandem with lower revenue, core profit after tax and minority interest (PATMI) declined at a stronger pace of 54.4%, impacted by unfavourable operating leverage.
The NFO segment benefited from the higher average sales per draw, supported by the higher accumulated prizes from the 4D Jackpot game.
Conversely, the weaker revenue from HR Owen was largely impacted by lower sales volume in the new car segment.
Core PATMI dipped at a larger pace of 30.2%, impacted by unfavourable operating leverage. Revenue rose marginally by 1.7%.
The improvement in the NFO segment was mainly boosted by the higher average sales per draw, boosted by record-breaking Supreme 6/58 Jackpot prize of RM121.7 mil.
Meanwhile, HR Owen recorded marginally weaker revenue, mainly impacted by weaker British Pound (GBP) against Ringgit (-3.7%).
Despite relatively flattish revenue, core PATMI improved at a stronger pace of 11.0%, further boosted by lower prize payout in NFO Segment.
Going into 2026, we expect SPToto’s NFO segment to deliver flattish Quarter-on-quarter (QoQ) performance, as sales per draw have not shown meaningful uplift despite the Supreme 6/58 Jackpot prize peaking at RM78.5 mil, before being won last Wednesday.
For HR Owen, a slight QoQ improvement is anticipated, supported by the UK’s September number plate registration month.
Looking further into 2026, we project NFO segment sales to post a normalised 5% revenue growth, while HR Owen will be flattish, primarily weighed down by the continued outflow of high-net-worth individuals from the UK.
At the group level, core PATMI is projected to contract by 12.3% year-on-year (YoY), mainly reflecting the high base in 2025, which benefited from the record-breaking Supreme 6/58 Jackpot prize and relatively lower prize payout (luck factor) in the NFO Segment.
With forecasts unchanged, we reiterate our HOLD call with an unchanged target price of RM1.39. —Aug 25, 2025
Main image: The Star
