GGRAsia – RGB posts US$4mln profit in 2Q, revenue down 70pct y-o-y

RGB posts US$4mln profit in 2Q, revenue down 70pct y-o-y

Aug 27, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck

Malaysian casino equipment supplier and distributor RGB International Bhd reported a second-quarter profit attributable to its shareholders of just under MYR18.9 million (US$4.3 million), down 28.8 percent from a year earlier. Such profit fell by 14.9 percent sequentially.

The company reported revenue of MYR99.6 million for three months to June 30, down 70.2 percent from a year ago, and 52.6-percent lower than in the preceding quarter, according to a Monday filing to Bursa Malaysia.

RGB announced a “second interim single tier dividend” of MYR0.006 per share, to be paid on October 15. The firm paid a first interim dividend of MYR0.006 per share on July 12.

The company recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of nearly MYR31.2 million in the April to June period, down 24.7 percent from a year ago.

According to the filing, the bulk of RGB’s second-quarter revenue – i.e., nearly MYR67.9 million – was from sales and marketing of products, down 77.7 percent from the prior-year period.

The firm said in its latest filing that the second-quarter performance in the sales and marketing segment was negatively affected compared to a year earlier, given a “bulk sale” recorded in the previous year corresponding quarter.

Revenue from the technical support and management segment in the reporting period grew by 2.5 percent year-on-year, to just above MYR29.8 million. Engineering services revenue was flat at MYR695,000.

RGB said in Monday’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, 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.

In late May, the gaming supplier said it had been awarded a contract by the Philippine Amusement and Gaming Corp (Pagcor) – the regulator and also an operator of casinos in that country – to supply the latter with a total of 1,968 slot machines. The total value of the contract is just above US$81.3 million, according to previous corporate information.

RGB stated in its Monday update it expected to start delivering the slot machines “in the second half of 2024 and complete the installation … by the end of the year”.

Earlier this month, RGB had mentioned that a wholly-owned unit, RGB (Macau) Ltd, had signed an agreement with FIRM 614 Co Ltd to distribute gaming equipment in Cambodia.

“The group remains vigilant for emerging opportunities including [the] prospect of new and upcoming markets,” outlined RGB in Monday’s filing. “Barring unforeseen circumstances, the group expects to achieve a stronger performance in 2024,” it added.