Malaysian-based gaming equipment supplier RGB International Bhd reported a 47% decline in profit to MYR3.7 million (US$863,500) for the three months to 31 March 2020, negatively impacted by COVID-19 and higher depreciation of new gaming machines.
The decline came despite a 48% increase in revenue to MYR77.4 million (US$18.1 million), including a 101% increase in RGB’s Sales and Marketing division to MYR44.0 million (US$10.3 million). Profit before tax for the division also increased by 111% due to more products being sold.
However, while the Technical Support and Management division saw revenue grow 11% to MYR32.7 million (US$7.6 million), it fell to a loss for the quarter of MYR2.1 million (US$490,000) “due to the additional depreciation of the new machines placed in new and existing outlets and also due to loss of revenue during the lockdown period imposed by various countries starting from mid-March 2020 as part of the measures to prevent the spreading of COVID-19.”
The smaller Engineering Services division booked a 40% increase in revenue to MYR690,000 (US$161,000) and a 78% increase in profit before tax to MYR476.000 (US$111,000).
Assessing the longer term impact of COVID-19 on the company’s operations, RGB said, “The financial impact of the COVID-19 pandemic could be significant to the Group and the Group is in the process of assessing the financial impact of COVID-19 pandemic since ongoing developments remain uncertain at this point in time.
“Gaming establishments in Timor-Leste and Vietnam have resumed operations starting from May 2020 while some casinos and VIP clubs in the other regions where the Group operates have also begun to resume operations starting from mid-June 2020.
“In the meantime, the Group continues to implement various cost control measures across the regions to contain its expenditures during this lockdown period. 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.”