GGRAsia – RGB almost breaks even in 4Q, cuts full-year loss

RGB almost breaks even in 4Q, cuts full-year loss

Feb 28, 2022 Newsdesk Industry Talk, Latest News, Rest of Asia

Casino electronic games and services supplier RGB International Bhd narrowed its fourth-quarter loss and its full-year loss, judged year-on-year, reporting improved earnings.

The group’s fourth-quarter loss was marginal, at MYR76,000 (US$18,116), compared to MYR6.4-million a year earlier.

Malaysia-based and -listed RGB’s full-year loss was MYR9.8 million, versus MYR28.7 million the year before.

The firm nonetheless noted: “We expect market conditions to remain volatile for 2022, due to the uncertainties amid the fluidity of the Covid-19 situation, especially in the countries where the group operates.”

But it added: “Barring unforeseen circumstances, the group foresees a relatively stronger recovery in the gaming market than the previous year and therefore a better performance for year 2022.”

No dividend was recommended for the financial year ended December 31, 2021, in the group’s Friday filing to Bursa Malaysia.

Fourth-quarter revenue was down 4.4 percent year-on-year, to MYR56.6 million, versus MYR59.2 million a year earlier.

Revenue for the year was actually up 13.2 percent from the print year, at MYR216.3 million.

Group earnings before interest, taxation, depreciation and amortisation (EBITDA) were mostly derived from its three main business segments: sales and marketing, technical support and management, and engineering services.

Fourth-quarter EBITDA rose 84.0 percent year-on-year, to MYR14.3 million.

Annual group EBITDA was nearly MYR45.4 million, up 56.7percent on the nearly MYR29.0 million achieved in 2020.

RGB’s management said in its commentary: “The revenue of the technical support and management division decreased by 19 percent” year-on-year in the fourth quarter, “mainly due to resurgence of Covid-19 cases which resulted in more intermittent lockdowns during the current quarter.”

But it added that the loss before tax for the fourth quarter had “reduced by 57 percent” year-on-year, as the firm “achieved better operational efficiency in the technical support and management division.”