GGRAsia – Casino tech firm RGB 3Q profit down 7pct, revenue up

Casino tech firm RGB 3Q profit down 7pct, revenue up

Nov 29, 2019 Newsdesk Industry Talk, Latest News, Rest of Asia

Casino equipment maker RGB International Bhd reported third-quarter unaudited profit attributable to shareholders of nearly MYR11.18 million (US$2.68 million), down 6.8 percent from the prior-year period.

Group revenue during the three months to September 30 this year rose 29.1 percent year-on-year, to just above MYR111.6 million, the firm said in a Thursday filing to Bursa Malaysia.

Earnings before interest, taxation, depreciation and amortisation stood at MYR23.23 million in the July to September period, up 10.9 percent from a year earlier.

Revenue for product sales and marketing – the firm’s main segment – rose by 43.5 percent from the prior-year period to nearly MYR80.61 million in the reporting period. Profit before tax for that division rose by 38.5 percent year-on-year to approximately MYR10.11 million in the third quarter of 2019, which the company said was “due to an increase in the number of products sold” in the reporting quarter.

The technical support and management division achieved revenue of MYR30.69 million for the quarter to September 30, up 8.2 percent compared to the corresponding quarter in 2018, “mainly due to a better performance in the Philippines’ outlets and the opening of a new outlet,” said RGB. The company did not identify the new outlet or its location.

Quarterly pre-tax profit for that division however fell by 37.9 percent year-on-year, to MRY4.16 million “mainly due to higher depreciation and provision for jackpot liabilities on new machines placed in a new outlet,” added the firm.

The company said in commentary on the reporting period that it “continues to capitalise on the strong performance of new and existing products” under its portfolio. RGB International stated that it expected to “achieve a better performance” in 2019.