GGRAsia – RGB jumps to US$6mln profit 2Q, hails full-year outlook

RGB jumps to US$6mln profit 2Q, hails full-year outlook

Aug 24, 2023 Newsdesk Industry Talk, Latest News, Rest of Asia, Top of the deck

Casino equipment supplier and distributor RGB International Bhd jumped back to profit in the second quarter, after a loss in the prior-year period.

Second-quarter profit at the Malaysian firm was just under MYR26.5 million (US$5.7 million), compared to an almost MYR2.7-million loss in second-quarter 2022.

It took first-half profit to June 30 this year to MYR37.0 million, after a first-quarter profit of just over MYR10.5 million.

The firm also announced to Bursa Malaysia on Thursday at the same time as its quarterly result, a special dividend payable on October 18. The single-tier dividend will amount to MYR0.006 per ordinary share.

RGB said in commentary: “Based on the favourable market outlook, the group expects to achieve a strong performance in financial year ending December 31, 2023, backed up by the sturdy orders secured to date, despite facing inflationary pressure on its operating costs.”

The second-quarter result was on revenue that rose 563.0 percent year-on-year, to nearly MYR333.7 million. The group’s overall cost of sales in the second quarter rose 570.4 percent year-on-year, to MYR291.7 million.

The bulk of the group’s second-quarter revenue – i.e., MYR303.8 million – was from sales and marketing of products, a rise of 975.8 percent on the same period a year earlier.

The company said there had also been a quarter-on-quarter boost to sales and marketing revenue “due to the increase in number of products sold and variation in product mix as compared to previous quarter”.

Second-quarter revenue from the technical support and management segment rose 35.8 percent year-on-year, to MYR29.1 million. The improvement was “mainly due to the better performance and increase in footfall in most of the outlets” with which it works.

Engineering services revenue was up 27.1 percent, to MYR694 million.

Group-wide earnings before interest, taxation, depreciation and amortisation (EBITDA) in the three months to June 30 were just under MYR41.4 million, a year-on-year rise of 287.6 percent. The quarterly result took first-half 2023 EBITDA to MYR65.4 million, an increase of 219.0 percent from the same period a year earlier.