Magnum net profit dips to RM21.84mil in second quarter

The number forecast operator

PETALING JAYA: Magnum Bhd reported a lower net profit of RM21.84mil for the second quarter ended June 30, 2016 (Q2’16), owing to a 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 with Bursa Malaysia, 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 Q2’16, the segment reported a pre-tax profit of RM34mil, or a substantial decline from the 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 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 had also impacted overall sales, it said.

Meanwhile, its investment holding division has returned to the black with a pre-tax profit of RM3.3mil for the quarter, compared with a pre-tax 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.