GGRAsia – Casino tech firm RGB 3Q profit flat on sales down cycle

Casino tech firm RGB 3Q profit flat on sales down cycle

Dec 04, 2017 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino equipment maker RGB International Bhd reported third-quarter unaudited profit that was flat judged year-on-year, on revenue that fell 35.2 percent from the prior-year period.

Such profit was MYR9.37 million (US$1.16 million) in the three months to September 30, compared to MYR9.33 million in the prior-year quarter, the firm said in a filing to Bursa Malaysia.

But third-quarter 2017 group revenue slumped by more than a third to MYR61.27 million, from MYR94.55 million a year earlier. The main component of group revenue – sales and marketing of product – fell 45.3 percent year-on-year in third quarter 2017, to MYR38.55 million, compared to MYR70.44 million a year earlier.

The company said in commentary on the reporting period that the reason for a fall in sales and marketing revenue, and of that segment’s profit before tax, was a “decrease in the number of machines and casino equipment sold in the quarter”.

It added the number of machines and casino equipment sold in the previous year’s corresponding quarter benefited from “a bulk order from a new integrated resort”, which the company did not name.

The company stated that the 7.2-percent year-on-year fall in quarterly revenue for the technical support and management division, to MYR22.2 million was “due to implementation of a smoking ban in public areas which has had a slight impact on certain outlets in the Philippines”. But the company added: “Steps are being taken to create areas for smokers.”

RGB International’s earnings per share for the three months to September 30 were MYR0.70 and MYR0.69 respectively on a basic and diluted basis, a fall of 1 percent year-on-year in each case.