World Cup impacts Magnum as profit and revenue fall in Q2

KUALA LUMPUR: Numbers forecast operator Magnum Bhd recorded lower revenue and net profit  in the second quarter ended June 30, 2018, as it attributed the weaker financial performance mainly due to the World Cup season in June.

It reported on Friday net profit fell by 19.9% to RM48.05mil from RM60mil a year ago due to lower revenue and coupled with a higher prizes pay-out ratio.. Revenue fell by 3.2% to RM600.39mil from RM620.58mil. 

Earnings per share were 3.38 sen compared with 4.21 sen. It declared an interim dividend of three sen a share, similar to a year ago.

"Gaming sales for the current quarter at RM600.2mil is lower than the previous year corresponding quarter by 3.2% or RM20.1mil. The decrease is mainly due to World Cup that took place in June 2018,” it said.

Magnum said due to the lower gaming sales and higher prizes payout ratio,gaming pre-tax profit fell substantially by RM23.4mil from RM91.7mil a year ago.

In the first half, its net profit rose by 13.7% to RM103mil from RM90.53mil in the previous corresponding period due to lower prize payouts. Revenue was flat at RM1.312bil compared with RM1.317bil.