RGB sees 47% drop in Q1 profits despite revenue rise
RGB International Bhd, a Malaysian-based gaming equipment supplier, has reported a 47% drop in year-on-year Q1 2020 profit, down to MYR3.6m ($841,119).
The decline was influenced by the coronavirus outbreak and higher depreciation of new gaming machines.
However, the company also reported a 48% increase in revenue. For Q1, RGB earned MYR77.4m, compared to MYR52.2m from the previous year. This includes revenue of MYR44m earned from product sales and marketing, which saw an increase of 101%.
The cost of sales rose by 90% to MYR63.7m. Earnings before taxes and other fees was nearly MYR18.6m, 23% higher than the previous year. Engineering division rose by 40%, bringing in MYR690,000 in revenue, with MYR476.000 in profits before taxes, which is a 78% increase.
The group also stressed the danger of COVID-19, saying it had a significant financial impact and the full scope of it is still uncertain at this time.
But with various gaming venues slowly opening up, RGB remains optimistic, stating “the Group has also put in place stringent health and precautionary measures at all its properties to comply with the relevant standard operating procedures and to ensure the safety and well-being of its employees and visitors at all times.”
RGB implemented various cost control measures to counter the expenses acquired during the lockdown.
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