Improvement in Profitability for Automatic Systems Ltd (ASL.mu) – Achieving 6.0m Operating Profit in 2023 Quarter Compared to 8.8m in 2022

Published On: August 17, 2023Company: Automatic Systems Ltd (ASL.mu)
Given the decrease in Totalisator turnover since 2021, what strategies could be implemented to increase profitability?
The Company could undertake strategies such as implementing innovative wagering channels, improving existing products and services, and investing in marketing and technological advancements in order to combat the decrease in Totalisator turnover. Additionally, the Company could look into cost optimization opportunities to further enhance profitability.

Comments on Results and Accounting Standards

  • Abridged condensed financial statements for quarter and six months ended June 30, 2023 are unaudited and prepared with same accounting policies as year ended December 31, 2022

Results

  • Football income decreased from Rs 40.3 million in 2022 to Rs 37.3 million in 2023
  • Tote income for quarter at 30 June 2023 increased from Rs 23.9 million in 2022 to Rs 37.4 million
  • Eleven race meetings were organized in 2023 compared to five in 2022
  • Income from Megawin Ltd for the quarter in 2023 was Rs 9.9 million compared to Rs 11.5 million in 2022

The Group

  • Group’s income for second quarter increased slightly from Rs 75.7 million in 2022 to Rs 84.6 million in 2023
  • Group’s operating profit for the quarter ended 30 June 2023 was Rs 6.0 million compared to Rs 8.8 million for 2022 quarter
  • For six months, Group’s income reached Rs 132.0 million compared to Rs 112.1 million for same period last year and operating losses Rs 3.9 million compared to a loss of Rs 4.9 million at 30 June 2022

Prospects

  • Football betting turnover is expected to maintain growth shown during first two quarters
  • Totalisator turnover has decreased significantly since 2021 with average turnover per meeting dropping by 32.8%
  • Board is concerned about company’s profitability in light of current trends

Useful links

About Automatic Systems Ltd (ASL.mu)

Automatic Systems Limited operates a totalisator system for horse racing and football betting. The company runs its operations through is two subsidiaries, Supertote which deals with the horse racing bets and Superscore which deals with the football bets. Automatic System Limited organises this betting platform for the horse racing in liaison with the Mauritius Turf Club in Mauritius. The company also runs this betting platform for soccer in Africa. Automatic Systems Limited is listed on the Stock Exchange of Mauritius.

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

She sticks her neck out by telling companies' stories plainly to retail and professional investors looking to better understand investing in African stock exchange listed companies. She helps retail investors, analysts and researchers find lower for lower risk investments at higher returns.

So "See the bigger picture" by reading her top-down views. Go long on African equities. Invest for higher returns. Stay on top and tower above the rest.