GEORGE TOWN: RGB International Bhd is planning to lease out 1,000 units of gaming machine for the financial year ending Dec 31,2020.
Group managing director Datuk Seri Chuah Kim Seah(pic) said the company was currently negotiating to install 1,000 gaming machines in the Asia-Pacific region.
“The bulk of the 1,000 units goes to the Philippines and Indochina markets. They will be installed by the third and fourth quarters, ” he said.
“We can expect these machines to generate a yield of RM13mil in the fourth quarter of 2020, ” he told StarBiz.
Currently, the gaming market in the Philippines generates about 60% of the group’s revenue.
Chuah said the group also aimed to sell 2,000 gaming machines in 2020.
Last year, the group sold about 1,600 gaming machines and installed a further 1,100 under its concession business.
The sales of the 2,000 machines will generate about RM250mil for the group, according to Chuah.
“The group currently has some 5,700 gaming machines leased out under its concession business.
“These concession machines are expected to contribute about RM120mil to the group for the 2019 financial year or about 30% of the group’s revenue, ” he said.
Chuah said there were also machines on trial run in Mexico.
“If everything works out, we will focus on the market in Mexico this year, ” he added.
On the impact of the coronavirus outbreak, Chuah said the impact was minimal.
“Our main markets in the Asia Pacific are the Philippines and Indochina but not Macau, ” he said.
For the 2019 financial year, the group posted an RM40mil net profit on the back of RM351mil revenue, compared to RM35mil and RM379mil achieved in 2018.
Under the group’s sales segment, the revenue decreased in 2019 because of bulk sales to an integrated resort in Indochina with a lower margin in 2018.
For the concession business, the revenue increased by 13% for 2019 as compared to the previous year due to better performance and opening of additional outlets during the year.
According to a Technavio report titled Global Slot Machine Market 2020-2024: Growing Vendor Involvement to Boost Market Growth, the global slot machine market size is expected to grow at a 15% compounded annual growth rate with a US$14.09bil revenue during the forecast period of 2020-2024.
The year-over-year growth rate for 2020 is estimated at 14.92% by the end of 2024, the report said.