Minimal impact of Kedah ban on NFOs

 

Berjaya Sports Toto Bhd (BToto), said Kenanga Research, has only 20 outlets in the state, which makes up less than three per cent of the total 680 outlets nationwide.

KUALA LUMPUR: The impact of Kedah's plan to immediately ban all 4D lottery shops in the state on number forecast operators (NFOs) will likely be minimal, Kenanga Research said.

This is given the small numbers of NFO outlets in Kedah.

Berjaya Sports Toto Bhd (BToto), said Kenanga Research, has only 20 outlets in the state, which makes up less than three per cent of the total 680 outlets nationwide.

Magnum Bhd has 13 outlets or less than three per cent of the group's total outlets of 485. 

"Pending clarity, we keep our estimates and target prices (TPs) (on BToto and Magnum) unchanged for now," said Kenanga Research.

For a quick back-of-envelope calculation, the firm said the immediate ban of NFO outlets in Kedah would reduce BToto's financial year 2023 earnings by 2.5 per cent, lowering its TP to RM2.36 from RM2.42.

Magnum will take a hit of 2.2 per cent on its FY22 earnings with TP being reduced to RM2.00 from RM2.04. - NST