Malaysian casino equipment supplier and distributor RGB International Bhd reported revenue of MYR108.6 million (US$22.9 million) for the fourth quarter of 2023, down 9.4 percent from a year ago. The result was down nearly 36.3 percent quarter-on-quarter.
The firm posted a fourth-quarter loss attributable to its shareholders of just below MYR26.8 million, compared to a profit of MYR9.4 million a year earlier, and a profit of MYR26.2 million in the preceding quarter.
RGB said its fourth-quarter performance had been affected by “delay in shipments”.
The supplier’s fourth-quarter administrative expenses rose by 298.2 percent year-on-year, to MYR47.6 million. They were up 275.9 percent sequentially.
RGB also announced to Bursa Malaysia on Thursday at the same time as its quarterly result, a “second interim dividend” of MYR0.008 per share, to be paid on April 18. The firm paid a “special dividend of MYR0.006 apiece in October, and a “first interim dividend” of MYR0.006 per share in January this year.
The company recorded negative earnings before interest, taxation, depreciation and amortisation (EBITDA) to the tune of MYR13.8 million in the three months to December 31. The figure compared to EBITDA of MYR25.4 million a year ago, and MYR39.7 million in the third quarter of 2023.
According to the filing, the bulk of RGB’s fourth-quarter revenue – i.e., MYR79.6 million – was from sales and marketing of products, down 7.0 percent from the prior-year period.
Revenue from the technical support and management segment in the final quarter of 2023 declined 16.2 percent year-on-year, to just under MYR27.5 million. Engineering services revenue was down 41.7 percent year-on-year, to MYR640,000.
For full-year 2023, RGB’s profit to shareholders rose by 682.8 percent year-on-year, to nearly MYR36.5 million. Aggregate revenue stood at MYR707.8 million, up 159.7 percent from 2022.
RGB said in Thursday’s filing that it has “adopted a more cautious and prudent decision” in determining the impairment loss for trade receivables, “albeit the ongoing monitoring and close following up with the respective debtors.”
“Given the ageing receivables, the group … decided to kitchen sink these costs even though some of the debtors have agreed to a repayment schedule,” it explained.
The firm added: “Consequently, the group has made an exceptional provision for impairment loss on trade receivables amounting to MYR13.9 million and MYR21.2 million for sales and marketing and technical support and management divisions, respectively, for the quarter ended 31 December 2023.”
Looking ahead, the company said its prospects “remain robust, bolstered by the promising market conditions, especially in key areas like the Philippines.
“Barring unforeseen circumstances, the group expects to achieve a better performance in 2024,” it stated.
