RGB back to black in 1Q, revenue doubles y-o-y

May 30, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Malaysian casino equipment supplier and distributor RGB International Bhd reported revenue of MYR210.1 million (US$44.6 million) for the first quarter of 2024, up 120.8 percent from a year ago. Revenue was up 93.4 percent judged quarter-on-quarter, according to a Thursday filing to Bursa Malaysia.

The firm posted a first-quarter profit attributable to its shareholders of just below MYR22.2 million, compared to a profit of MYR10.5 million a year earlier. The company posted a loss of MYR26.8 million in the preceding quarter.

RGB also announced a “first interim single tier dividend” of MYR0.006 per share, to be paid on July 12. The firm paid a “dividend of MYR0.006 apiece in October, and a “first interim dividend” of MYR0.006 per share in January this year.

The firm paid on April 18 a dividend of MYR0.008 per share for the financial year ended December 31, 2023.

RGB said in Thursday’s filing that its first-quarter performance benefited from an “increase in number of products sold” during the period.

The company recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of nearly MYR36.6 million in the three months to March 31. The figure was up 52.5 percent year-on-year and rose by 165.2 percent sequentially.

According to the filing, the bulk of RGB’s first-quarter revenue – i.e., MYR174.9 million – was from sales and marketing of products, up 153.6 percent from the prior-year period.

Revenue from the technical support and management segment in the reporting period grew by 30.4 percent year-on-year, to just above MYR33.4 million. Engineering services revenue increased by 10.3 percent year-on-year, to MYR588,000.

RGB said in Thursday’s filing that the group’s prospects “remain robust, bolstered by the promising market conditions, especially in … the Philippines”.

“As a pivotal slot machine distributor and major player in the machine concession business in the country, the group is well positioned to capitalise on the [gaming] industry growth” in the Philippines, it added.

In April, outside the reporting period, RGB said one of its units acquired 86 gaming machines operated in the Philippines, for a consideration of just over US$2.2 million. The group is entitled to a 20-percent share of the winnings from the 86 machines, net of relevant taxes and joint expenses, said the company at the time.

Earlier this week, the company announced changes to its board, including the appointment of two children of Chuah Kim Seah, RGB’s managing director, to senior roles within the organisation.

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