Electronic gaming machine supplier RGB International Bhd saw its revenue decline 16% to MYR78.6 million (US$19.3 million) and its profit before tax by 30% to MYR8.3 million (US$2 million) for the three months to 31 December 2018, driven primarily by a decline in the company’s Sales and Marketing (SSM) segment.
SSM saw its revenue fall 22% to MYR55.4 million for the quarter, with RGB pointing to a decrease in the number of products sold, forcing an 18% segment decline in profit before tax to MYR6.8 million.
While the Technical Support and Management (TSM) division booked a 6% increase in revenues in 4Q18, it also saw a significant 52% decline in profit before tax to MYR2 million, due in part to the provision for jackpot liabilities of MYR1.8 million from the adoption of new accounting standards as well as “lower hold factors in certain outlets, higher depreciation on new machines for upgrading and expansion and increase of headcount in certain region.”
Group-wide EBITDA for the period fell 4% to MYR15.6 million.
Despite the slower quarter, RGB enjoyed a strong year in 2018 with full year revenue up 50% to MYR379.3 million, including a 64% rise in the SSM segment to MYR265.1 million and 26% in the TSM segment to MYR110.7 million. The company attributed the results to more products sold, a better product mix and various other factors.
Profit before tax for the year increased slightly to MYR47.4 million while EBITDA for the group declined by 1% to MYR65.7 million.
RGB said it is confident in achieving improved results in all segments in 2019, stating, “The group continues to capitalize on the strong performance of new and existing products under its portfolio in SSM division” and plans to “carry out further improvement in the performance of concession machines in TSM division.
“Barring unforeseen circumstances, the group expects to achieve a better performance next year,” it said.
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