GGRAsia – Casino supplier RGB reports modest 2Q profit

Casino supplier RGB reports modest 2Q profit

Sep 01, 2021 Newsdesk Industry Talk, Latest News, Rest of Asia

Casino electronic games and services supplier RGB International Bhd reported a second-quarter net profit of MYR601,000 (US$144,931), compared with a loss of MRY14.0 million a year earlier. Revenue for the period rose by 284.5 percent year-on-year, to nearly MYR55.5 million, the firm told Bursa Malaysia.

No dividend has been recommended by the directors for the financial period ended June 30 this year.

Group earnings before interest, taxation, depreciation, and amortisation (EBITDA) were nearly MYR14.3 million in the second quarter of 2021, compared with just MYR410,000 a year earlier.

The latest reporting quarter saw revenue in RGB’s key segments – casino equipment sales and marketing; and technical support and management – rise sharply year-on-year.

For the first category, revenue was just below MYR38.2 million, up 197.5 percent from the prior-year period. RGB said the growth was “due to increase in number of products sold and variation in product mix” offered.

Revenue for technical support and management was just under MYR17.0 million, compared with MYR1.5 million a year earlier. Such increase was “mainly due to more outlets having resumed operations” in the reporting quarter, said RGB.

“However, most of these operating outlets are running at restricted capacity as part of the measures to prevent the spreading of Covid-19,” it added. As such, the segment recorded a loss of MYR9.0 million during the quarter.

The company said it expected the market to “remain volatile” in the second half of 2021, “amid the fluidity of the Covid-19 situation,” especially in the countries where it operates.

The group has also been conducting “test simulations” for a “remote gaming solution” for operators of land-based casinos, as a new business to increase its revenue.