Malaysian gaming equipment supplier RGB International saw a drop in revenue and a significant loss for the fourth quarter of 2023, according to the group’s most recent financials.
Revenue totaled MYR108.63 million ($22.9 million), a yearly fall of 9 percent, while the group’s 4Q23 loss was MYR30.47 million ($6.43 million), reversing a profit of MYR8.7 million ($1.83 million) in 4Q22.
The group’s EBITDA for the period was also negative, at MYR13.83 million ($2.92 million), a reversal from a positive MYR25.35 million ($5.35 million) in 4Q22, as drops were registered in all of its segments.
The group’s Sales and Marketing (SM) arm continued to be its largest revenue contributor, at MRR79.57 million ($16.8 million), down 7 percent yearly.
Its Technical Support and Management (TSM) revenue was down by 16 percent, to MYR27.45 million ($5.8 million), while its Engineering Services (ES) segment fell by nearly 42 percent, to just MYR640,000 ($135,000).
The figures resulted in a loss from both the SM and TSM arms of the group.
Despite the results, the group is distributing a dividend for the quarter.
In its performance review, the group notes that it ‘has adopted a more cautious and prudent decision in determining the impairment loss for trade receivables, albeit the ongoing monitoring and close following up with the respective debtors’.
The group notes it is planning to ‘kitchen sink these costs even though some of the debtors have agreed to a repayment schedule’.
This has resulted in the group making a provision for an impairment loss on SM and TSM of MYR13.9 million ($2.93 million) and MYR21.2 million ($4.47 million), respectively.
The group remains optimistic about 2024, noting ‘promising market conditions’, especially for the Philippines.
