Magnum cautiously optimistic on second-half outlook

Magnum saw its net profit jump 65.3% to RM43.6mil in the second quarter ended June 30 from RM26.4mil in the same period last year.

KUALA LUMPUR: Magnum Bhd is cautiously optimistic that the performance of its gaming business for the second half-year (2H) will remain promising.

The number forecast operator (NFO) said the optimism was based on the continued growth trend of all products in the past six months, notably the 4D Jackpot game and Magnum Life game.

Magnum saw its net profit jump 65.3% to RM43.6mil in the second quarter ended June 30 from RM26.4mil in the same period last year.

Revenue for the quarter rose 11.4% to RM537.1mil against RM482.1mil a year ago while earnings per share expanded to 3.04 sen versus 1.84 sen previously.

Magnum said the higher group revenue was mainly contributed by the gaming division, which also contributed to the improved pre-tax profit.

“Despite the lower number of draws in the current quarter (2023: 40 draws; 2022: 42 draws), the gaming revenue of RM537.1mil was higher than the previous year’s corresponding quarter by RM55.1mil or 11.4%.

“The increase was due to improved net sales per draw, especially the 4D Jackpot game, where there was a strong jackpot run during the current quarter.”

Magnum said the gaming division recorded a pre-tax profit of RM60.5mil, which was RM20.7mil higher when compared to RM39.8mil recorded in previous year’s corresponding quarter.

“The higher gaming pre-tax profit was mainly due to improved sales, coupled with lower prize payout and operating expenses recorded in the current quarter.”

In the first half, Magnum posted a higher net profit of RM59.4mil on revenue of RM1.08bil.

Despite a lower number of draws conducted in the first half of 2023 (2023: 81 draws; 2022: 85 draws), Magnum said the gaming sales of RM1.08bil recorded was higher than last year’s corresponding period by RM100.1mil, or an increase of 10.2%.

“In line with higher gaming sales, gaming pre-tax profit increased by RM13.5mil from RM80.4mil recorded in the previous year’s corresponding period to RM93.9mil,” the company said.

Magnum also declared a second interim dividend of two sen per share for the current financial period, bringing the total dividend declared to date for the financial year ending Dec 31 to three sen per share.

The second interim dividend will be paid on Sept 13 and the entitlement date is on Sept 4.

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