GGRAsia – Casino tech firm RGB rebounds to US$2mln profit in 4Q

Casino tech firm RGB rebounds to US$2mln profit in 4Q

Feb 28, 2023 Newsdesk Industry Talk, Latest News

Malaysia-based casino electronic games and services supplier RGB International Bhd posted a net profit of just over MYR9.3 million (US$2.1 million) for the three months to December 31, compared to a loss of MYR549,000 in the prior-year quarter, it said in a Monday filing to Bursa Malaysia.

Its performance earlier in the year meant that its full-year 2022 profit was MYR4.6-million, though that was a big improvement on a nearly MYR10.3-million loss in 2021.

The firm said factors in the improvement were recovery in the tourism and hospitality sectors, “aided by the reopening” of national borders after the Covid-19 pandemic, “especially in the regions where the group operates”.

It added: “Based on the favourable market outlook, the group expects to perform significantly better in financial year ending 31 December 2023,” supported by “strong orders secured to date,” despite facing “inflationary pressure” on its operating costs.

The company operates three main segments: sales and marketing of gaming equipment; technical support and management; and engineering services.

Group earnings before interest, taxation, depreciation and amortisation (EBITDA) for the three months to December 31, rose 82.8 percent year-on-year, to MYR25.3 million. For the full year, the group’s EBITDA was up 34.2 percent year-on-year, to nearly MYR60.3 million.

Fourth-quarter sales and marketing revenue jumped by 125.8 percent year-on-year, to nearly MYR85.5 million. That quarter’s technical and support management revenue rose 94.7 percent to MYR32.7 million. Fourth-quarter engineering services revenue leapt 534.7 percent, to just below MYR1.1 million.