RGB reports flat profit in 17Q3, revenue declines

Casino supplier RGB International saw its 17Q3 revenue drop 35.2 percent, while profit remained flat year-on-year.

Revenue in 17Q3 fell to RM61.3 million (US$15.1 million), down from RM93.5 million recorded in the quarter ended September 30, 2017.

Profit on the other hand, came in at RM9.5 million in the period, similar to the profit observed in the third quarter of 2016.

RGB said the main decrease in revenue came from its Sales and Marketing division, which fell 45 percent year-on-year, due to a decrease in the number of machines and casino equipment sold in the quarter. The company explained that it had received a bulk order from a new integrated resort in 16Q3, which pushed up the quarter’s revenue.

RGB also added that it observed a slight drop in revenue from its Technical Support and Management division in the quarter, due to the implementation of a smoking ban in public areas which has impacted certain outlets in the Philippines.

Despite a decline in revenue in the two divisions, profit remained flat, due to a reduction in cost of sales, which nearly halved in the third quarter of 2017 to RM39.5 million, compared to RM71.9 million in 16Q3.

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