Malaysia’s RGB International Berhad, a leading distributor of gaming products to the Asian gaming industry, reported a profit of MYR29.4 million (US$6.3 million) for the three months to 30 June 2023, reversing an MYR2.3 million (US$495,000) loss in 2Q22 on strong recovery in both the Sales and Marketing (SSM) and the Technical Support and Management (TSM) divisions.
The result included a 563% increase in revenues to MYR333.7 million (US$71.8 million), of which MYR303.8 million (US$65.4 million) was from the SSM division, up 976% year-on-year. Segment EBITDA was also up 874% to MYR3.3 million (US$710,400). This, RGB said, was due to an “increase in the number of products sold and variation in product mix as compared to the previous quarter.”
The TSM division enjoyed a 36% increase in revenue to MYR29.1 million (US$6.3 million) and a 323% increase in segment EBITDA to MYR13.9 million (US$3.0 million) on “better performance and increase in operating capacity in most of the outlets” the company serves.
For the first six months of 2023, RGB reported profit of MYR41.3 million (US$8.9 million) on revenues of MYR428.8 million (US$92.3 million), with consolidated EBITDA of MYR65.4 million (US$14.1 million).
Commenting on its future prospects, the group explained, “The tourism and hospitality industries are expected to continue recovering, aided by the increase in international travels especially in the regions where the Group operates.
“Based on the favourable market outlook, the Group expects to achieve a strong performance in financial year ending 31 December 2023, backup by the sturdy orders secured to date, despite facing inflationary pressure on its operating costs.”