Sports Toto: Earnings Lifted By IT-Related Contribution

Sports Toto Bhd (Sports Toto) posted a 55% jump in 4QFY26 net profit to RM62.5m, mainly driven by contribution from several IT-related projects in the Philippines and Vietnam. Stripping out contribution from these projects, FY26 results were estimated to be broadly in line with our and consensus estimates. FY26 revenue was down 6.8% YoY due to lower gaming and motor dealership contribution.

Sports Toto

As the operating environment of its underlying businesses remain challenging, we cut our FY27-28F forecasts by an average of 11%. “We expect vehicle sales in the UK to be affected by weaker consumer spending due to geopolitical tensions in the Middle East while the number forecasting business is likely to face persistent competition from illegal online betting operators.

“As we rollover our valuation base year and factoring in lower earnings forecasts, our TP remains unchanged at RM1.40. A final dividend of 3.0 sen per share was declared, higher than 4QFY25’s 2.0 sen per share. Maintain Neutral,” says PIB.

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