Malaysia-based RGB International Bhd reported a 23 percent year-on-year decline in net profit for the first quarter ended March 31st, 2026, as higher sales costs and weaker contribution from its technical support and management division outweighed revenue growth.
The Malaysian gaming equipment supplier posted a profit for the financial period of MYR9.32 million ($2.35 million), down from MYR12.14 million ($3.06 million) a year earlier. Profit attributable to owners of the company fell 27 percent to MYR9.07 million ($2.28 million).
Revenue rose 19 percent to MYR87.38 million ($22.01 million), compared with MYR73.57 million ($18.53 million) in the prior-year period. However, cost of sales increased at a faster pace, rising 33 percent to MYR67.16 million ($16.92 million). As a result, gross profit declined 12 percent to MYR20.21 million ($5.09 million), with gross margin narrowing to about 23 percent from about 31 percent.
The group’s sales and marketing division, which includes gaming machine sales, recorded a 39 percent increase in revenue to MYR70.27 million ($17.70 million). Profit before tax for the segment rose 25 percent to MYR8.58 million ($2.16 million), mainly due to a higher number of products sold and changes in product mix.
By contrast, the technical support and management division saw revenue fall 28 percent to MYR16.36 million ($4.12 million), while profit before tax dropped 49 percent to MYR3.64 million ($917,000). RGB attributed the decline primarily to weaker performance at several key outlets and the continued closure of certain technical support and management outlets in Cambodia’s Poipet region since the beginning of June 2025.
Unallocated expenses also increased, mainly due to higher unrealized foreign exchange losses, partly offset by higher realized foreign exchange gains.
On a quarter-on-quarter basis, profit before tax improved 23 percent from MYR8.64 million ($2.17 million) in the fourth quarter of 2025, despite a 20 percent decline in revenue. RGB said the improvement was mainly due to lower operating expenses and the absence of about MYR3.4 million ($856,000) in impairment and expected credit loss provisions recorded in the previous quarter.
RGB also approved a first interim dividend of MYR0.002 ($0.0005) per share for 2026, payable on July 16th, after paying a MYR0.001 ($0.0003) dividend for 2025 on April 16th.
In its outlook, the group said it remained ‘cautiously optimistic’ on prospects for the financial year ending December 31st, 2026. RGB said regional gaming industry performance would be influenced by regulatory developments, macroeconomic conditions, consumer spending patterns and tourism trends in its key markets, including the Philippines, Cambodia and Vietnam.
The company said it would continue to pursue expansion opportunities, operational enhancements and project rollouts, while prioritizing ‘prudent cost management, operational efficiency and disciplined capital deployment.’ Barring unforeseen adverse developments, RGB said it expects to deliver a ‘satisfactory’ performance for the year.
