GGRAsia – RGB 2Q profit dips 17pct on revenue down 67pct

RGB 2Q profit dips 17pct on revenue down 67pct

Sep 02, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck

Second-quarter profit at Malaysian casino equipment maker and distributor RGB International Bhd fell 17.1 percent year-on-year on revenue that dropped by 66.8 percent, the firm said in a Friday filing to Bursa Malaysia.

Such profit was just under MYR7.2 million (US$1.7 million), compared to MYR8.6 million a year earlier.

Group revenue for the three months to June 30 was MYR55.2 million, compared to MYR166.4 million in the prior-year quarter.

Measured by segment, sales and marketing revenue dropped 83.3 percent year-on-year, to MYR23.2 million, from MYR138.4 million. Revenue from technical support and management rose 14.2 percent to MYR31.4 million, from MYR27.5 million. A company executive had told GGRAsia in a recent interview that the latter segment was a growth area for its business.

Management said in commentary on the latest earnings, that a quarterly decline in revenue and profit before tax for the sales and marketing division was “mainly due to the late delivery of certain bulk orders to various countries and also partly caused by a bulk sale to an integrated resort in Indochina in the previous year’s corresponding quarter”.

But the firm added the outstanding bulk orders were “expected to be recognised by end of 2019” on its balance sheet.

Group quarterly earnings before interest, taxation, depreciation and amortisation (EBITDA) were down slightly, by 2.4 percent at MYR15.3 million, from MYR15.7 million.

Basic and diluted earnings per share for the second quarter were MYR0.46 in each case, a decline of 18 percent year-on-year.

In the first quarter RGB International had reported profit up 6 percent, on higher sales.