GGRAsia – RGB says 3Q profit down, as revenue and sales dip

RGB says 3Q profit down, as revenue and sales dip

Nov 28, 2024 Newsdesk Latest News, Rest of Asia, Top of the deck

Malaysian casino equipment supplier and distributor RGB International Bhd reported a third-quarter profit attributable to its shareholders of just under MYR19.2 million (US$4.3 million), down 26.8 percent from a year earlier. Such profit was up 1.6 percent sequentially, despite a slight decline in revenue for the period.

The company reported revenue of MYR94.2 million for the three months to September 30, a decline of 44.7 percent from a year earlier. Judged sequentially, such revenue was down 5.4 percent, according to a Wednesday filing to Bursa Malaysia.

RGB announced a “third interim single tier dividend” of MYR0.006 per share, and a “special interim single tier dividend” of MYR0.012 per share, for the financial year ending December 31. Payment is to be made on “30 December 2024,” stated the firm.

The company paid two separate dividends earlier this year, each of MYR0.006 per share.

RGB reported third-quarter earnings before interest, taxation, depreciation and amortisation (EBITDA) of nearly MYR27.2 million, down 31.6 percent from a year ago, and 12.8-percent lower than in the preceding quarter.

According to the filing, the bulk of RGB’s third-quarter revenue – i.e., MYR66.3 million – was from sales and marketing of products, down 51.8 percent from the prior-year period.

The firm said in its latest filing that the third-quarter performance in the sales and marketing segment was negatively affected compared to a year earlier, “mainly due to lower number of products sold”.

Revenue from the technical support and management segment in the reporting period fell by by 16.5 percent year-on-year, to MYR26.7 million, “due to lower performance” in some of the group’s technical support and management outlets. Engineering services revenue was down 3.9 percent year-on-year, to MYR487,000.

RGB said in Wednesday’s filing that the group’s prospects “remain robust, bolstered by the promising market conditions, especially in … the Philippines”.

In late May, the gaming supplier said it had been awarded a contract by the Philippine Amusement and Gaming Corp (Pagcor) – the regulator and 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 latest update it expected “to complete the delivery and commissioning of the bulk order by the end of the year”.

In reply to questions by GGRAsia, Alejandro Tengco, chairman and chief executive of Pagcor, said on Tuesday that he expected the batch of new and modern slot machines to “be in operations in the middle of December” at the agency’s own-brand Casino Filipino venues.

In late August, RGB launched a new showroom in Malaysia’s capital, Kuala Lumpur, and it is preparing to launch soon a new showroom in the Philippine capital, Manila. The latter will be part of a facility that includes a “training hub for customers, and a repair centre,” according to the gaming supplier.