Sports Toto’s FY2025 Deep Dive: Full-Year Profits Grow, But Q4 Shows Signs of Pressure
Published on: August 22, 2025
Sports Toto Berhad has just released its final quarter and full-year financial results for the period ending June 30, 2025. The full-year report paints a picture of resilient growth, with key metrics on the rise. However, the fourth-quarter performance shows a slowdown, highlighting some challenges the company is navigating. For investors, this report offers a mixed but insightful view into the company’s health.
A key highlight for shareholders is the declaration of a fourth interim dividend of 2.0 sen per share, bringing the total dividend for the financial year to 8.0 sen. This underscores the company’s continued commitment to returning value to its shareholders.
Core Financials: A Tale of Two Timelines
While the full-year results were positive, the fourth quarter (Q4) saw a contraction compared to the same period last year. Let’s break down the numbers for the quarter ending June 30, 2025.
Q4 FY2025 Results
Revenue: RM 1.63 billion
Profit Before Tax: RM 72.3 million
Net Profit: RM 40.8 million
Earnings Per Share (EPS): 3.03 sen
Q4 FY2024 (Comparative)
Revenue: RM 1.65 billion
Profit Before Tax: RM 104.2 million
Net Profit: RM 69.4 million
Earnings Per Share (EPS): 5.01 sen
The Group’s revenue saw a slight dip of 1.3% in Q4, primarily due to softer sales from its UK-based luxury car dealership, H.R. Owen. The more significant 30.6% drop in pre-tax profit was a result of challenges in both major segments. The core lottery business, STM Lottery, saw its pre-tax profit fall by 14.8% due to higher operating expenses, including corporate social responsibility sponsorships, despite a 3.7% rise in revenue. Meanwhile, H.R. Owen’s pre-tax profit also declined due to lower new car sales and increased spending on brand positioning.
Full-Year 2025 Performance: A Story of Resilient Growth
Looking at the full twelve-month period, the narrative is much more positive. The Group successfully navigated market challenges to deliver growth across the board.
For the full financial year ended June 30, 2025, Sports Toto reported a 1.7% increase in revenue to RM 6.46 billion and an impressive 8.2% rise in pre-tax profit to RM 370.8 million. This translated to a 7.7% growth in net profit, reaching RM 237.5 million.
This annual growth was largely powered by the strong performance of its principal subsidiary, STM Lottery. The lottery business posted a 5.4% increase in revenue, driven by higher accumulated jackpots from the popular Supreme Toto 6/58 game. This, combined with a lower prize payout, boosted its pre-tax profit by a healthy 13.3% for the year.
A Look Under the Hood: Segment Performance
Sports Toto’s business is primarily driven by two key segments: its core Toto Betting operations in Malaysia and its Motor Dealership arm in the UK.
| Business Segment | FY2025 Revenue (RM’000) | FY2025 Results (RM’000) |
|---|---|---|
| Toto Betting | 3,112,379 | 432,568 |
| Motor Dealership | 3,261,975 | 32,976 |
As the figures show, the Toto Betting (NFO) business remains the powerhouse of profitability for the Group. In contrast, the Motor Dealership (H.R. Owen) contributes significantly to revenue but faced profit pressures this year. Its pre-tax profit fell by 24.0% due to higher brand-related expenses and the unfavorable impact of foreign exchange rates when translating its earnings from British Pounds to Malaysian Ringgit.
Navigating the Road Ahead: Risks and Future Outlook
Looking forward, the Board of Directors remains “cautiously optimistic,” expressing confidence that the Group’s business will remain stable and resilient. The core NFO business is expected to continue its growth trajectory, driven by the popularity of its jackpot games.
However, the company acknowledges significant external challenges, including prevailing global economic headwinds such as geopolitical tensions, ongoing trade disputes, and the impact of inflation. Despite these uncertainties, the management is confident that Sports Toto will maintain its market leadership in the Malaysian NFO sector and expects a positive outlook for the upcoming financial year ending in June 2026.
Summary and Investment Considerations
In summary, Sports Toto’s FY2025 results present a dual narrative. The full-year figures demonstrate the strength and resilience of its core lottery business, which successfully drove overall profit growth. However, the weaker final quarter, impacted by cost pressures and a slowdown in its UK automotive segment, serves as a reminder of the external risks at play. The consistent dividend declaration remains a positive signal for investors seeking income.
While the outlook is positive, investors should remain mindful of the following key risks:
- Global Economic Headwinds: Factors like inflation and geopolitical tensions could impact consumer discretionary spending, which is vital for both the lottery and luxury car segments.
- UK Automotive Market: The performance of H.R. Owen is subject to the UK’s economic health, automotive trends, and supply chain dynamics, which have proven to be challenging.
- Foreign Exchange Fluctuations: As a significant portion of revenue comes from the UK, fluctuations in the British Pound (GBP) against the Malaysian Ringgit (MYR) can materially affect the Group’s reported earnings.
Final Thoughts
From a professional standpoint, this report highlights a company with a robust, cash-generating core business that provides a solid foundation. The challenges in its UK automotive arm are noteworthy, and investors will be watching closely to see how the company manages costs and navigates market shifts in that segment. Ultimately, the stability and market leadership of the NFO business remain the key pillar of its performance.
What are your thoughts on Sports Toto’s performance this year? Do you think the NFO business can continue to offset the challenges in the motor dealership segment in the coming year?
Share your insights in the comments below!
