RGB International reports US$1.3m loss but increased revenue for Q3
RGB International has shared its financial results for the third quarter of the year, reporting a net loss of MYR5.6m (US$1.3m).
Malaysia.- RGB International has reported a loss of MYR5.6m (US$1.3m) for the third quarter of the year. Revenue was up 75.3 per cent year-on-year to MYR70.1m, with casino equipment sales and marketing revenue up 89 per cent to MYR56.8m due to an increase in the number of products sold.
Technical support and management revenue was up 36.8 per cent to MYR13.1m due to the resumption of operations at outlets. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) were nearly MYR8m compared with MYR2m in the same period in 2020, but EBITDA was down by 43.7 per cent quarter-on-quarter.
For the second quarter, the Malaysian casino services provider reported revenue of MYR55.47m ($13.3m).
RGB International said: “We expect market conditions to remain volatile for the remainder of 2021 due to the uncertainties amid the fluidity of the Covid-19 situation especially in the countries where the Group operates.
“Amidst all these challenges, the Group foresees some recovery in the gaming market and therefore a better performance for the year 2021.”
It added: “The Group is optimizing its existing resources to increase the revenue during this unprecedented period and at the same time embarking on new avenues by implementing remote gaming solutions for land-based casinos in regulated markets.”
Malaysian casino industry to see economic rebound in Q4
Casino operators can expect to see better results in Q4, according to analysts. Vincent Khoo, UOB Kay Hian Malaysia head of research, has told The Malaysian Reserve that as the pandemic eases, tourism will be the main beneficiary of the upcoming economic reopening.
He said: “The gaming companies and casino segment is in a sweet spot to capitalise on this post-pandemic leisure boom.”
As for the possible resurgence of Covid-19 cases, he said: “We think that it is unlikely with Malaysia’s stellar vaccination milestone and gradually achieving herd immunity. Authorities have made it clear they intend to restore a semblance of normalcy even without eradicating the virus.”
