“We have so far delivered 400 gaming machines,” said group managing director Datuk Seri Chuah Kim Seah. The machines were delivered to Malaysia, the Philippines and Vietnam.
GEORGE TOWN: RGB International Bhd
is targeting to return to the black this year, riding on the back of its booming machine concession, technical support and management (TSM), and sales and marketing and manufacturing (SSM) businesses.
The group plans to sell around 1,000 gaming machines this year to its customers in the Asia-Pacific region, generating about US$25mil (RM110mil) in revenue.
“We have so far delivered 400 gaming machines,” said group managing director Datuk Seri Chuah Kim Seah.
The machines were delivered to Malaysia, the Philippines and Vietnam.
Under its TSM business, the group is targeting to lease out about 5,000 gaming machines to casinos and clubs in Cambodia, Laos, Vietnam, Timor Leste and the Philippines.
“In the Philippines, we expect to lease out more than 2,800 units with a value of more than US$40mil (RM176mil) this year.
“Two more clubs are opening in the Philippines that will require another 270 machines from the TSM segment. The Philippines is our biggest market,” Chuah said.
The group expects to return to the black this year.
The TSM segment should contribute about 60% to the group’s revenue this year, with SSM the remaining 40%.
The group is committing about US$1mil (RM4.4mil) for its capital expenditure this year. He added that Malaysia was a steady market for its SSM segment.
“This year, the domestic market should consume about 300 machines compared to 200 per annum a year ago.
“These machines are being purchased to replace old units in local clubs,” he said.
According to Chuah, the group will continue to embark on new avenues by optimising its existing resources to increase revenue during this unprecedented period and, simultaneously, expand the market on remote gaming solutions for land-based casinos.
“Barring unforeseen circumstances, the group foresees a relatively stronger recovery in the gaming market than the previous year and therefore a better performance for 2022,” he said.
As part of its overall liquidity management, the group preserves sufficient cash and cash equivalents to meet its working capital requirements.
With the improvement in revenue and earnings before interest, taxes, depreciation and amortisation, cash and cash equivalents stood at RM27.3mil as of Dec 31, 2021.
RGB borrowings were at RM13.6mil as of Dec 31, 2021, a reduction from RM31.7mil previously.
For the first quarter ended March 31, the group posted a RM3.3mil after-tax loss on the back of a RM32mil turnover compared to a RM4.7mil after-tax loss and RM34mil revenue registered in the previous year’s corresponding period.
According to the Japan-based Global Information research house, the global slot machine market size, estimated to be about US$2.18bil (RM9.6bil) in 2022, is expected to be readjusted to US$4.18bil (RM18.4bil) by 2028, with an 11.47% compounded annual growth rate during the period.
