GGRAsia – Casino supplier RGB slips to 3Q net loss

Casino supplier RGB slips to 3Q net loss

Nov 30, 2021 Newsdesk Industry Talk, Latest News, Rest of Asia

Casino electronic games and services supplier RGB International Bhd has reported a third-quarter net loss of MYR5.6 million (US$1.3 million), after posting a modest MYR601,000-profit in the previous quarter.

The group told Bursa Malaysia on Monday that its third-quarter loss was however 53.4-percent smaller than in the same period of 2020.

Revenue for the three months to September 30 this year, rose by 75.3 percent year-on-year, to nearly MYR70.1 million, the Malaysian firm noted.

No dividend was recommended by the directors for the third quarter this year.

Group earnings before interest, taxation, depreciation, and amortisation (EBITDA) were just over MYR8.0 million in the period, compared with just under MYR2.0 million a year earlier. Nonetheless, EBITDA was down by 43.7 percent from the second quarter of 2021.

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 MYR56.8 million, up 89.0 percent from the prior-year period. RGB said the growth was due to an “increase in the number of products sold and variation in product mix” offered.

Revenue for technical support and management was just under MYR13.1 million, up 36.8 percent from 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 MYR7.2 million during the quarter.

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

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