GGRAsia – Casino tech firm RGB posts profit up 28pct in 3Q

Casino tech firm RGB posts profit up 28pct in 3Q

Nov 27, 2018 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino equipment maker RGB International Bhd reported third-quarter unaudited profit that was up 28 percent judged year-on-year, to MYR11.99 million (US$2.86 million).

Group revenue during the three months to September 30 this year rose 41 percent to nearly MYR86.49 million, from MYR61.27 million a year earlier, the firm said in a Monday filing to Bursa Malaysia.

Earnings before interest, taxation, depreciation and amortisation stood at MYR20.94 million in the July to September period, up 33 percent from the prior-year period.

Revenue for product sales and marketing – the firm’s main segment – rose by 45.7 percent from the prior-year period to MYR56.16 million in the reporting period. Profit before tax for that division rose by 47 percent year-on-year to MYR7.40 million in the third quarter of 2018, which the company said was “due to an increase in the number of product sold” in the reporting quarter.

The technical support and management division achieved revenue of MYR28.36 million for the quarter to September 30, up 28 percent compared to the corresponding quarter in 2017. Quarterly pre-tax profit for that division however fell by 13 percent year-on-year “due to lower hold factors in certain outlets, higher depreciation on new machines for upgrading and expansion and increase of headcount in certain regions,” said 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. It added that it continues to increase the number of concession machines “through existing and new concessions”, and to “carry out further improvement in the performance of concession machines” in the technical support and management division.

RGB International stated that it expected to “achieve a better performance” in 2018.

The Malaysian maker of gaming equipment said in September that it intended to spin off its technical support and management division and list it on the Hong Kong Stock Exchange.