BToto (BUY) - 9MFY12 Results In-Line

BToto (BUY)

9MFY12 Results In-Line

BToto’s 9MFY12 net profit of RM315.71m came in-line, with HLIB’s and also street’s estimates, accounting for 78.7% and 79.4% respectively.

Declared third interim single tier dividend of 6 sen per share (2QFY11: 6 sen). Total dividend for 9MFY12 is 22 sen, translating to 5% yield. Given that this has reached our full-year dividend forecast of 22 sen and no changes made to our forecast, we wouldn’t be surprise if the group decided to pay another round of dividend in 4QFY12, which will be a bonus for investors.

Yoy: BToto’s revenue increased 14.9% on the back of higher number of draw days and higher sales during CNY. This is offset by the lesser sales/draw in non-jackpot games, cannibalized by 4D Jackpot. However, net profit fell 2.7% due to the much higher prize payout of 62.4% compared to only 58.8% in 3QFY11.

Qoq: Revenue went up 13% mainly attributable to the higher number of draw days. The increase in non-jackpot’s and lotto games’ sales/draw from the lessened cannibalization by 4D Jackpot also contributed to the increase qoq. However, the increase was partially offset by the higher prize payout during the quarter.

To date, 4D Jackpot sales have reached to an average of RM1.76m sales per draw. However, Magnum is still the leader in the 4D Jackpot segment with market share of 60.1%.

No changes made to our forecast. Maintain BUY on BToto with TP of RM4.92.

Source: HLIB Research 22 March 2012