GEORGE TOWN: RGB International Bhd has secured the rights to sell two more branded gaming machines in Asia under its sales and marketing business division.
Group managing director Datuk Chuah Kim Seah (pic) told StarBiz after an AGM that the brand names were KL Saberi and Atlas.
“KL Saberi is a brand name belonging to a well known casino, Kangwon Land in South Korea. The Atlas is a Australian brand,” Chuah added.
He added that the group has targeted to launch 200 units of the new brands this year in the Philippines, Cambodia and Vietnam.
On its concession business, the group is currently installing 1,700 units, of which 1,300 are for the Philippines market.
“In the Philippines, some 600 gaming machines have already been installed in the casino according to the terms and conditions of the contract,” Chuah said.
The remaining units will be installed by end of 2019.
“These 1,300 machines would generate a yield of at least US$50mil for the group over the next five years,” Chuah said.
The group’s business in the Philippines contributes over 60% of its annual revenue.
The group’s technical support and management division operates in 34 concession venues across Asia with a total of 5,500 machines as at end of 2018.
To date, RGB has concluded business deals to install an additional 1,770 gaming machines across Asia, of which 1,300 units are earmarked for the Philippines market.
Moving ahead, the group targets to expand its presence geographically into new markets in different regions as well as increasing its customer base in our existing markets. “The group will increase its product offerings by collaborating with more partners who have synergy with us.
“The group remains focused on growing the revenue from engineering services,” Chuah said.
On its liquidity and capital resources, the group’s cash position stood at RM62.7mil as at Dec 31 2018.
Net cash generated from operations was RM46.9mil.
During the 2018 fiscal year, RM94.3mil was used for capital expenditure, RM6.3mil for repayments of borrowings and RM9.4mil for payment of dividends.
At its AGM, RGB received approval to pay a final single tier dividend of 0.7sen per share, which will be paid on 15 August 2019. For the first quarter ended March 31, the group posted RM6.9mil in net profit on the back of a RM52.2mil revenue, compared to RM6.4mil and RM47.8mil achieved in the previous year’s corresponding period. — By David Tan
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