KUALA LUMPUR: Magnum Bhd
posted earnings pf RM59.95mil in its second quarter ended June 30, 2017, up 174% from the previous corresponding quarter owing to a significantly decreased prize payout ratio. It has declared a dividend of three sen per share with ex and payment dates on Sept 13 and 29 respectively
This is despite pre-tax losses of RM4.3mil in the investment holdings and others division in the current quarter due to a fair value loss of quoted investment.
The group recorded lower revenue of RM620.6mil in the quarter under review as compared to RM625.9mil in the previous year quarter, due to a decline in gaming revenue. It said earnings per share stood at 4.21 sen compared to 1.53 sen in Q2 last year.
"Gaming sales has declined by RM5.3mil in the current year quarter mainly due to one less draw. Notwithstanding the lower revenue, the pre-tax profit has increased substantially by RM60.9 mil arising mainly from a much lower prizes payout ratio in this quarter," the company said in its filing with Bursa Malaysia.
For the first six months of 2017, gaming sales were weaker by RM60.8mil or 4.4% from the year-ago period, mainly due to intense competition from illegal operators, weak consumer spending, and further compounded by two fewer draws in the period under review. Pre-tax profit for the first half of 2017 was RM6.1mil higher at RM136.58mil.
In its filing, the group cautions that it expects the business environment to be challenging due to cautious consumer spending and intense competition from illegal operators. It expects gaming revenue to be lower than that of the previous year.
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