RGB International expects to return to profitability this year

The company has been affected by the Covid-19 pandemic.
The company has been affected by the Covid-19 pandemic.

RGB International has revealed that it expects to generate about US$25m in revenue by selling 1,000 slot machines to its Asia-Pacific customers this year.

Malaysia.- RGB International has said that it is confident it will return to profitability this year after two years marked by the impact of the Covid-19 pandemic. It said its recovery is being driven by thriving machine concession, technical support and management (TSM), and sales and marketing and manufacturing (SSM) businesses.

Datuk Seri Chuah Kim Seah, the group’s managing director, said the company has delivered 400 gaming machines to Asia-Pacific customers this year and expects to sell some 1,000 slots, generating nearly RM110m (US$25m) in revenue.

As for the TSM business, RGB aims to lease around 5,000 gaming machines to casinos and clubs in Cambodia, Laos, Vietnam, Timor Leste and the Philippines. The TSM segment is expected to contribute about 60 per cent of group sales this year, with SSM contributing the remaining 40 per cent.

Kim Seah told The Star: “In the Philippines, we expect to lease out more than 2,800 units with a value of more than RM176mil (US$40mil) this year. Two more clubs are opening in the Philippines that will require another 270 machines from the TSM segment. The Philippines is our biggest market.”

During the fourth quarter of last year, RGB International reported a decline in revenue to RM56.6m (US$13.5m), down 4 per cent year-on-year. Revenue was also down when compared to the previous quarter from MYR70.1m in Q3.

For the first quarter of the current year, RGB posted an RM3.3m post-tax loss on RM32m in turnover. That compared to a RM4.7m loss on RM34m in last year’s corresponding period.

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