Magnum 1Q net profit slips to RM55.59mil, warns of weaker quarter ahead

  • Corporate News
  • Friday, 22 May 2020

KUALA LUMPUR: After experiencing a decline in its first quarter earnings, Magnum Bhd is expecting the full impact of the Covid-19 pandemic to hit in the coming quarter.

The group announced today that net profit for the first quarter ended March 31, 2020, slid 7% to RM55.59mil versus the previous corresponding quarter on the back of lower revenue from gaming sales. The group declared a first interim dividend of 2.5 sen per share payable on June 26, 2020.

Revenue for the quarter was RM609.6mil, which was 19.4% lower than in the comparative quarter, as a result of the closure of selling outlets from March 18 in line with the movement control order.

According to Magnum, six draws were cancelled in the first quarter during the two-week period to March 31.

Meanwhile, the group's investment holdings and others division recorded a lower loss of RM3.5mil in the first quarter, mainly owing to lower fair value loss on investments.

With a majority of cancelled draws falling in the second quarter of 2020, there are expectation of a steeper fall in gaming sales moving forward.

Moreover, the numbers forecast operator added that the impact would also be felt in the second half of the year following the lifting of the conditional movement control order (CMCO).

"Post CMCO, it is expected that the disposable income of the players would be affected as a result of economy downturn and with the imposition of new Standard Operating Procedure like social distancing, mask, sanitiser and contact tracing, this would further instill fears that may prevent the players to play in our outlets," it said.

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