RGB International Bhd has been one of the most stable casino equipment makers on the market. The company has experienced steady growth over the past few years, in a trend that has continued into this year as well. In the first quarter of 2020, RGB has experienced a 48.4 percent increase in revenue. But, despite this, the first quarter of this year has had a significant financial impact on the company, as it noted a profit drop of 46.4 judged on the year-to-year comparison. Continue reading to find out more.
RGB in Detailed Numbers
Leading up to March 31st, the company’s revenue was MYR77.4 million, compared to the MYR52.2 million they recorded over the same period last year. The most significant profit boost came in the form of a dramatic increase in products sold compared to the same quarter of the previous year. That said, RGB also experienced a massive spike in the cost of sales, totaling over 90 percent compared to 2019. Before taxation, interest, depreciation, and other fees and expenses, the company recorded earnings of MYR18.6 million. This equals to a 23 percent rise from the same period the year before.
Going by these numbers, it’s clear to see that even though RGB experienced a substantial increase in revenue, their total profits have been less than impressive. The extra expenses and losses have mostly come from the group’s technical support and management division. This part of their company recorded an increase in revenue of close to 11 percent, but with a total loss of MYR2.1 million. This s significantly worse compared to 2019, during which this department netted a profit of nearly MYR6 million.
Company representatives stated that this loss came as the impact of the Covid-19 crisis, which had a significant effect on every gaming establishment all over the globe. Moreover, they also went on record saying that the financial impact of the crisis could play a vital role in the entire RGB group. In line with this, the company has been implementing various cost control measures to lessen the financial strain and extra expenses caused by the crisis.
During June’s tax filling, RGB has said that a certain number of its providers operating in the Asia-Pacific region have begun working again, after temporarily suspending all operations over the previous several months. Namely, most of the RGB-powered casinos stopped business entirely around mid-March, when various countries started introducing more stringent lockdown and quarantine regulations.
No Dividend Payout For 2019
Aside from being a successful casino equipment maker, RGB is also very active in the sales and marketing branches of the casino industry. As such, it regularly pays out dividends at the end of every year. However, during the circumstances surrounding the Covid-19 pandemic, the Malaysian-based company has made a precedent announcing earlier this year that they won’t be paying out dividends for 2019.
According to company representatives, RGB is positioning itself to be ready for the upturn. Still, it’s clear to see that the economic uncertainties surrounding the current situation have made a significant impact on the company’s decision-making.