Malaysian casino equipment supplier and distributor RGB International Bhd has reported a significant increase in revenue and profit for the first quarter of 2024, driven by promising market conditions and strategic positioning in the Philippines.
According to a Thursday filing to Bursa Malaysia, the company achieved a revenue of RM210.1 million ($44.6 million), marking a 120.8 percent increase from the same period last year and a 93.4 percent rise from the previous quarter.
RGB International posted a first-quarter profit attributable to shareholders of just below RM22.2 million ($4.73 million), a substantial improvement compared to the RM10.5 million ($2.24 million) profit recorded a year earlier.
This comes after a RM26.8 million ($5.71 million) loss in the preceding quarter, highlighting a strong turnaround in the company’s financial performance.
In recognition of its robust performance, RGB announced a “first interim single tier dividend” of RM0.006 ($0.0013) per share, scheduled for payment on July 12th.
This follows the firm’s previous dividend payouts of RM0.006 ($0.0013) per share in October and January, and a dividend of RM0.008 ($0.0017) per share paid on April 18th for the financial year ended December 31, 2023.
The company’s strong performance in the first quarter was attributed to an increase in the number of products sold during the period.
Earnings before interest, taxation, depreciation, and amortisation (EBITDA) reached nearly RM36.6 million ($7.80 million), up 52.5 percent year-on-year and 165.2 percent sequentially.
The majority of RGB’s first-quarter revenue – RM174.9 million ($37.29 million) – came from sales and marketing of products, reflecting a 153.6 percent increase from the prior-year period.
Revenue from the technical support and management segment grew by 30.4 percent year-on-year to just above RM33.4 million ($7.12 million), while engineering services revenue saw a 10.3 percent rise to RM588,000 ($125,000).
Strong Philippines market prospects
Looking ahead, RGB International’s prospects appear strong, particularly in the Philippine market.
The Philippine Amusement and Gaming Corporation (PAGCOR) announced that the country’s Gross Gaming Revenue (GGR) reached a record PHP285 billion ($4.86 billion) in 2023 and is projected to achieve PHP336 billion ($5.73 billion) in 2024 with the opening of new casinos and continued expansion in the electronic gaming segment.
‘As a key slot machine distributor and major player in the machine concession business in the Philippines, RGB is well positioned to capitalize on this industry growth,’ the company says in the dispatch.
‘The group remains vigilant for emerging opportunities, including the prospect of new and upcoming markets. Barring unforeseen circumstances, RGB expects to achieve stronger performance in 2024, building on the momentum of its first-quarter results.’
