Magnum’s Q1 earnings fall, no dividend proposed

KUALA LUMPUR: Magnum Bhd posted earnings of RM30.57mil in the first quarter (Q1) ended March 31, down 55.6% from a year ago, due to lower gaming sales and higher prize payout ratio.

This marked the first quarter in four years that the directors did not propose any dividend.

In a filing with Bursa Malaysia, the company said lower gaming sales pulled down its revenue to RM697.08mil from RM752.56mil in the previous year’s corresponding quarter.

Gaming sales for the quarter under review, at RM697.1mil, was lower by 7.4% or RM55.5mil than what it recorded a year ago.

Magnum attributed the decline to intense competition from illegal operators, weak consumer spending and one less draw in Q1.

In line with the lower sales and compounded by higher prizes payout ratio, the gaming pre-tax profit fell from RM99.7mil previously to RM44.9mil in Q1 2017.