Pg 108 - Berjaya Corporation Berhad

Sports Toto Malaysia’snew outlet signboard.Mr. Vincent Seow receiving thecertificate of recognition from DatukDanny Ooi, Managing Director ofthe Malaysia Book of Records.REVIEW OF OPERATIONSThe PhilippinesMalaysiaFor the financial year under review, Sports Toto recorded arevenue growth of 6.7% from RM2.955 billion in the previousyear to RM3.152 billion. The higher revenue was achieved in spiteof the year under review having 3 draws less than the previousfinancial year. On a per draw basis, Sports Toto achieved a growthof 8.6%, which was mainly attributed to the higher sales of the4-Digit game as well as the contribution from the Mega Toto 6/52jackpot game that replaced the Toto 4/49 in June 2007.Sports Toto continued to gain market share and remained themarket leader among all the Number Forecast Operators in thecountry in terms of total revenue for the year under review.Pre-tax profit was lower by 12.2% at RM485.2 million comparedto RM552.4 million in the previous financial year mainly due to ahigher prize payout and higher marketing expenditure.In January 2008, the Mega Toto 6/52 jackpot game recordedthe highest ever jackpot prize payout of RM19.3 million in thecountry’s history which Sports Toto received recognition fromthe Malaysia Book of Records.Sports Toto purchased an additional 600 new FLX sales terminalsin February 2008 which were deployed to the outlets in April andMay 2008 to enhance capacity to capture the high sales duringpeak hours.In April 2008, Sports Toto unveiled its new outlet signboardfeaturing several subtle changes to enhance its brand identityand to project a more vibrant and modern look.For the financial year ended 30 April 2008, Prime GamingPhilippines, Inc. (“PGPI”) reported a revenue of Peso 1.28billion, an increase of 21.8% from the previous year mainly fromthe higher revenue recorded by its wholly-owned subsidiary,Philippine Gaming Management Corporation (“PGMC”). In linewith the increase in revenue, pre-tax profit increased by 25.5%to Peso 687.9 million compared to Peso 548.3 million in theprevious financial year.PGMC recorded a revenue increase of 21.8% to Peso 1.28 billionmainly due to additional ticket sales from higher jackpot prizesduring the year and the increase in the minimum price per betof the Super Lotto 6/49 game from Peso 10.00 to Peso 20.00in January 2008. Pre-tax profit increased 21.4% to Peso 699.1million compared to Peso 575.7 million in the previous financialyear.PGMC completed the full upgrade of its central computer systemto the new Datatrak system and the replacement of all existingterminals with the newer FLX terminals in July 2007. PGMC willalso continue to rationalize the current telecommunication linksof its outlets in Luzon by deploying faster and more reliabletelecommunications connectivity resulting in more cost-effectivetelecommunication solutions.The United States of AmericaFor the financial year under review, International Lottery &Totalizator Systems, Inc. (“ILTS”) reported a revenue of USD13.03million, an increase of 17.9% compared to USD11.05 millionposted in the previous financial year. A net income of USD3.87million was recorded compared to net income of USD0.50million in the previous year. The increases were mainly due to therecognition of revenue from the voting system segment.Berjaya Sports Toto Berhad (9109-K) Annual Report 2008 9