Kenanga maintains Outperform call on Magnum

“While the luck factor remaining the deciding factor as the prize payout ratio is inconsistent from quarter to quarter, the implementation of GST will add cost to the operator as it needs to absorb the 6% tax which crimps its bottomline,” it said in a note on Monday. 

Kenanga said it was too bullish in its NFO ticket sales assumption. NFO revenue has been adjusted to off-set the GST in the third quarter, which was previously classified as other expenses in the second quarter.