Malaysia-based casino electronic games and services supplier RGB International Bhd posted a net profit of just above MYR10.5 million (US$2.3 million) for the three months to March 31, compared to a loss of MYR3.3 million in the prior-year quarter, it said in a Friday filing to Bursa Malaysia.
The result also meant a sequential improvement: RGB had reported a net profit of just over MYR9.3 million for the final quarter of 2022.
Overall revenue for the latest reporting period almost tripled in year-on-year terms, to MYR95.2 million.
The firm said first quarter revenue from sales and marketing of gaming equipment increased by 367.5 percent year-on-year, to MYR69.0 million, “mainly due to increase in number of products sold”.
RGB pointed out that the tourism and hospitality sectors in the markets where the firm operates were “expected to continue recovering” in the remainder of 2023, following a post-Covid-19 rebound in international travel.
The company added that, “based on the favourable market outlook,” it expected to “perform better” in 2023 compared to the previous year, when it posted a full-year profit of MYR4.6 million. Such forecast was also based on “the strong orders secured to date”, despite “inflationary pressure” negatively impacting its operating costs.
Earlier this month, Hong Kong-listed International Entertainment Corp announced it was buying a total of 382 slot machines of various models from RGB, in a deal worth just over US$5.7 million. The machines are to be deployed at New Coast Hotel Manila in the Philippine capital.
RGB operates three main segments: sales and marketing of gaming equipment; technical support and management; and engineering services.
Group earnings before interest, taxation, depreciation and amortisation (EBITDA) for the three months to March 31 rose 144.4 percent year-on-year, to MYR24.0 million.
First-quarter technical and support management revenue rose 52.3 percent to MYR25.6 million. Engineering services revenue for the period leapt 485.7 percent, to just below MYR533,000.
No dividend was recommended for the first quarter.
