GGRAsia – RGB posts 3Q profit, revenue reaches US$37mln

RGB posts 3Q profit, revenue reaches US$37mln

Nov 30, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Casino equipment supplier and distributor RGB International Bhd reported revenue of MYR170.4 million (US$36.6 million) for the third quarter this year, up 142.2 percent from a year ago. The result was down nearly 49.0 percent quarter-on-quarter.

Third-quarter profit attributable to shareholders of the Malaysian firm was just above MYR26.2 million, compared to a MYR1.3-million profit in the prior-year period. Such profit was flat judged sequentially.

The latest results took the firm’s profit for the first nine months this year to MYR63.3 million, compared to a loss of nearly MYR4.7 million in the comparable period of 2022.

The firm also announced to Bursa Malaysia on Wednesday at the same time as its quarterly result, an interim single tier dividend of MYR0.006, to be paid on January 16.

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

In a recent interview with GGRAsia, RGB’s vice president of sales support and marketing, Chuah Eng Meng, said the company was on track to achieve in 2023 an annual record in terms of gaming machine sales.

“This year, we should be able to cross the 4,000-machine mark… thanks to some of the big orders that we have: a majority of those come from the Philippines,” he stated.

According to Wednesday’s filing, the bulk of RGB’s third-quarter revenue – i.e., MYR137.4 million – was from sales and marketing of products, a rise of 212.0 percent on the same period a year earlier.

Revenue from the technical support and management segment in the three months to September 30 rose 24.2 percent year-on-year, to just under MYR32.0 million. The improvement was “mainly due to improved performance across most of the outlets” with which it works.

Engineering services revenue was up 62.0 percent year-on-year, to MYR507 million.

Group-wide earnings before interest, taxation, depreciation and amortisation (EBITDA) in the three months to September 30 were just above MYR39.7 million, a year-on-year rise of 175.0 percent.