Malaysian lottery operator Magnum Bhd expects weakness in consumer spending to persist this year, as the country implements a 6-percent Goods and Services Tax (GST) on most consumer items – including gaming – with effect from April 1.
“This is likely to have a moderating effect on our sales,” Magnum said. It added: “The GST expense based on net gaming supplies – that will be absorbed by the company – will have an impact on our profitability for the coming financial year.”
So-called number forecast operators in Malaysia – including licensed lottery firms and pools operators – already pay an 8-percent gaming tax on total ticket sales and an 8-percent pool betting duty on net revenue.
Magnum reported a 15.9-percent increase in profit for the fourth quarter of 2014, even as revenue for the period went down slightly judged year-on-year.
Profit attributable to equity holders of the parent increased to MYR61.3 million (US$16.6 million), the company said in a statement on Thursday. Revenue for the period dropped by 1.9 percent to MYR727.4 million, compared to the prior-year period.
The group recorded a marginally higher pre-tax profit in the final quarter of 2014 of MYR85.7 million when compared to the MYR83.8 million achieved in the previous year’s corresponding quarter.
“The increase was mainly due to [a] lower prizes payout in the gaming segment net of losses incurred by the investment holdings segment,” the firm said.
Gaming pre-tax profit increased by MYR10.5 million to MYR89.9 million in the three months to December 31.
For full-year 2014, Magnum reported a profit attributable to owners of the parent company of MYR261.7 million, down by 6.4 percent from the previous year. Revenue fell by 3.3 percent year-on-year to MYR2.9 billion.
The company reported lower sales in the gaming segment for 2014, “as a result of cautious consumer spending and a relatively higher prize payout ratio”.
Sep 19, 2018Nowadays, millennials, people who were born in the 1980s or...
Aug 16, 2018Food and drink have been heavily marketed as part of Macau...
Jun 27, 2018Macau’s gaming law needs to be amended in order to...
Nov 15, 2018Macau’s Chief Executive, Fernando Chui Sai On (pictured), delivered on Thursday the local government’s policy address for 2019, but the city’s leader provided no guidance regarding what...
"I am not going to speculate on what the [casino licence refreshment] tender requirements would be. I have full confidence and faith in the Macau government to treat everyone fairly"
Wilfred Wong Ying Wai
President and chief operating officer of Macau-based casino operator Sands China