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Automatic System Ltd’s Financial Report: Horse Racing Dark Future



Automatic System Ltd's Financial Report: Horse Racing Dark Future
Image source: Defi Media

Directors of Automatic System Ltd express pessimism about the future of Totalisator (Tote) betting on local horse races due to various uncertainties surrounding the sector.

They highlight in the group’s financial report that there are fewer imported horses, some long-established stables have closed, and maintenance work at the Champ de Mars racecourse has been delayed.

The company’s revenue for the year ending on December 31, 2023, decreased to Rs 1.08 billion (from Rs 1.29 billion in 2022), with net income also dropping to Rs 277.8 million (from Rs 377.6 million in 2022).

A loss of Rs 57 million was recorded for the year, including a goodwill impairment of Rs 45.4 million (compared to Rs 30.2 million in 2022).

Group losses after tax amounted to Rs 60.6 million for the fiscal year ending on December 31, 2023, while 2022 saw profits of Rs 28.2 million.

The Tote’s revenue for the 37 meetings held this year decreased to Rs 455.1 million, a 41% drop from Rs 776.7 million for 39 meetings in 2022.

Factors affecting all revenue channels of the Tote include a 14% tax on gross stakes, a decrease in the number of runners per race, general uncertainties and challenges facing the horse racing industry that undermine confidence, as well as the entry of an additional Tote operator.

In contrast, Harel Mallac reported a 3% increase in revenue for the fiscal year ending on December 31, 2023, reaching Rs 4.33 billion compared to Rs 4.19 billion in the previous year.

The Group’s share of results from associated and joint venture companies amounted to Rs 68 million (compared to Rs 59 million in 2022), with net income reaching Rs 185 million, an improvement from Rs 159 million.

This performance was primarily driven by improved results in the Equipment & Systems and Technology segments.

Gamma Civic also experienced revenue growth, with a total of Rs 1.14 billion for the fiscal year ending on December 31, 2023, attributed to increased activities across all business sectors of the group, including Chemicals, Equipment & Systems, Technology, and Investments & Corporate.

In the Chemicals sector, revenue decreased from Rs 2.12 billion in 2022 to Rs 2 billion in 2023, with after-tax profit dropping from Rs 57 million to Rs 50 million.

Equipment & Systems revenue increased from Rs 1.36 billion in 2022 to Rs 1.66 billion in 2023, with after-tax profit improving from losses of Rs 1 million to Rs 59 million.

Technology revenue decreased from Rs 770 million to Rs 742 million, but after-tax profit turned positive from losses of Rs 2 million to Rs 4 million.

Investments & Corporate revenue increased from Rs 195 million to Rs 229 million, with after-tax profit decreasing from Rs 85 million to Rs 75 million.

Overall, the Group’s after-tax profit for 2023 amounted to Rs 443 million, down from Rs 481 million in 2022, while the company’s after-tax profit was Rs 234 million for 2023, a decrease from Rs 386 million in the previous year.

Group operating profit decreased from Rs 347 million in 2022 to Rs 323 million in 2023.

In addition, there was a 22% increase in fixed odds betting on football, with revenue rising from Rs 508.6 million in 2022 to Rs 620.7 million in 2023.

The payment to winning bettors also increased from 83.7% to 89.7% of net revenue after tax.

Source: Defi Media

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