Magnum posts net profit of RM48m in 3Q FY19


  • Corporate News
  • Tuesday, 19 Nov 2019

Magnum Bhd said on Tuesday its better performance was due to lower pre-tax loss recorded by the investment holdings division mainly due to tax penalty of RM44.20mil a year ago.

KUALA LUMPUR: Magum Bhd posted a net profit of RM48mil in the third quarter ended Sept 30,2019 compared with net loss of RM70.51mil a year ago.

It said on Tuesday its better performance was due to lower pre-tax loss recorded by the investment holdings division mainly due to tax penalty of RM44.20mil a year ago.

It revenue fell by 2.2% to RM652.10mil from RM667.11mil a year ago while its earnings per share were 3.37 sen compared with loss per share of 4.96 sen. It declared an interim dividend of four sen, similar to last year.

Its gaming sales fell by 2.3% to RM652.10mil due to five lesser draws in the Q3 and the effect of the 6% service tax as compared to the 0% GST from June 1,2018 to Aug 31,2018.

In line with the lower gaming sales and higher payout, gaming pre-tax profit fell by RM23.5mil to RM73.90mil from RM97.40mil a year ago.

Its investment holdings and other division recorded a favourable vairance of RM36.2mil compared with a tax penalty of RM44.2mil.

For the nine months ended Sept 30,2019, its net profit surged by 461% to RM182.43mil from RM32.48mil in the previous corresponding period. Its revenue increased by 4.8% to RM2.074bil from RM1.979bil.

Commenting on the gaming sales of RM2.07bil for the nine months, it said there was an increase of 4.8% despite 11 lesser draws.

This was mainly due to higher sales from the 4D Jackpot game arising from prolonged jackpot runs, sales generated from Magnum Life game which was launched in April 2018 and more sustained enforcement by authorities on illegal operators.


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gaming , Magnum , 4D jackpot , tax penalty

   

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