Malaysian gaming equipment supplier RGB International reported a steep drop in third-quarter earnings as weaker sales, high jackpot payouts and foreign-exchange losses dragged performance across its core divisions.
The group’s profit before tax fell 73 percent to RM5.5 million ($1.28 million) in the three months to September, down from MRY20.4 million ($4.74 million) a year earlier, while net profit plunged 78 percent to MRY4.1 million ($0.95 million).
Revenue contracted 25 percent to MRY71.1 million ($16.53 million), reflecting a slowdown in its Sales and Marketing arm, where revenue slipped 14 percent to MRY57.3 million ($13.33 million) amid lower product shipments. Profit before tax for the segment eased to MRY7.3 million ($1.70 million) from a year earlier.
The downturn was more severe in the Technical Support and Management division, where revenue halved to MRY13 million ($3.02 million). The unit swung to a pre-tax loss of MRY372,000 ($0.09 million) from a profit a year ago, hit by high jackpot payouts and the continued closure of several outlets in Poipet.
Unrealised foreign-exchange losses also weighed on results, pushing unallocated expenses higher compared with the same quarter last year.
Compared with the previous quarter, the group’s performance also weakened sharply. Revenue fell 25 percent from MRY94.9 million ($22.07 million) in the second quarter, while profit before tax tumbled 66 percent from MRY16.1 million ($3.74 million). Both major divisions posted lower earnings due to softer sales and weaker gaming activity.
Despite the slump, RGB said it remained optimistic about its medium- to long-term outlook, citing sustained regional demand and growth in key gaming markets such as the Philippines.
