A Magnum 4d outlet at Section 17, PJ. Magnum Corp is a subsidiary of Multi-Purpose Holdings Bhd (MPHB).
PETALING JAYA: Magnum Bhd
reported a lower net profit of RM21.84mil for the second quarter ended June 30, 2016 (Q216) owing to lower contribution from the gaming division arising from exceptionally high payouts.
The number forecast operator’s revenue for the quarter amounted to RM625.78mil. In comparison, Magnum recorded a net profit of RM59.83mil on the back of RM647.13mil in revenue during the same period a year ago.
In a filing to the exchange, Magnum noted that its gaming division’s sales had declined by RM21.1mil during the quarter as it continued to face intense competition from illegal operators and weakness in consumer spending.
For 2Q16, the segment reported a pretax profit of RM34mil, or a substantial decline from RM86.5mil achieved the year before.
According to Magnum, several factors have led to lower gaming sales. Among them are increasing activity by illegal operators, weak consumer spending, and the effects of recognising revenue net of the Goods and Services Tax (GST) on gaming supply for six months this year compared to three months from April to June a year ago.
Additionally, the relatively low 4D Jackpot prize pool owing to a higher number of Jackpot strikes during the period has also impacted overall sales, it said.
Meanwhile, its investment holding division had returned back into the black with a pretax profit of RM3.3mil for the quarter, compared to a pretax loss of RM2.4mil a year ago. The improvement was mainly attributed to the fair value gain of quoted investments registered in the quarter as opposed to a fair value loss position recognised in the previous corresponding quarter.
On its future prospects, the number forecast operator says that it will strive to increase gaming sales, improve operational efficiency and enhance customer service to boost sales in spite of the challenging economic environment.
Magnum’s shares were last traded at RM2.47 on Thursday, one sen lower than the previous day’s close.
The company also declared a second interim single tier dividend of three sen per share to be paid out on Sept 30, 2016.
Subscribe now and receive FREE sooka plan for 1 month.
T&C applies.
