GGRAsia – Casino tech firm RGB sees 4Q profit up 80pct on higher sales

Casino tech firm RGB sees 4Q profit up 80pct on higher sales

Feb 28, 2020 Newsdesk Industry Talk, Latest News, Rest of Asia

Casino equipment maker RGB International Bhd reported on Thursday fourth-quarter 2019 profit that was up 79.8 percent judged year-on-year, to MYR14.7 million (US$3.5 million), supported by higher sales during the period.

Group revenue during the three months to December 31 last year rose by 68.1 percent to slightly above MYR132.1 million, the firm said in a filing to Bursa Malaysia.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) were nearly MYR29.2 million in the October to December period, up 86.9 percent from the prior-year period.

RGB’s board proposed a single-tier dividend of MYR0.003 per ordinary share for financial 2019.

Revenue for product sales and marketing – the firm’s main segment – increased by 76.4 percent from the prior-year period to MYR97.7 million in the reporting period. Profit before tax for this division was up by 59.2 percent year-on-year to nearly MYR10.8 million in the fourth quarter of 2019, which the company said was due to an “increase in number of products sold” in the reporting quarter.

The technical support and management division achieved revenue of MYR33.7 million for the quarter to December 31, up 47.8 percent compared to the corresponding quarter in 2018. Quarterly pre-tax profit for the division jumped 235.2 percent year-on-year to approximatelyMYR6.8 million, “mainly due to a better performance and opening of an additional outlet during the year,” said the firm.

For full-year 2019, RGB reported net profit of nearly MYR39.8 million, 13.1-percent higher than in the previous year. Revenue for the 12 months to December 31 however fell 7.4 percent year-on-year, to MYR351.1 million. EBITDA for the full year stood at MYR82.8 million, up 26.0 percent from 2018.

Revenue for product sales and marketing declined 15.7 percent in year-on-year terms, to just below MYR223.5 million; but profit before tax for the segment rose 15.8 percent to MYR27.8 million. The higher revenue reported in 2018 “was solely due to a bulk sale to an integrated resort in Indochina with a lower margin,” said RGB.

Profit before tax in the technical support and management division fell 1.6 percent to MYR22.0 million in full-year 2019, on revenue that actually rose by 13.2 percent to MYR125.3 million. The company said “better performance” and an additional outlet boosted revenue in the segment, but “higher depreciation” and “additional provision for jackpot liabilities on new machines placed in a new outlet” had negatively impacted profit.