GEORGE TOWN: RGB International Bhd
is close to achieving its targeted sales of 4,000 units of gaming machines estimated at RM560mil under its sales, services and marketing (SSM) segment, says group chief operating officer Datuk Steven Lim.
The group, which is involved in electronic gaming machines and equipment industry, has sold about 3,500 gaming machines valued about RM510mil so far this year, he added.
Lim told StarBiz that the sales were mainly for the group’s customers in Cambodia, Vietnam, Malaysia and the Philippines.
Meanwhile, under its technical and support management segment (TSM), Lim noted the group has generated about RM86.7mil from some 5,000 gaming machines that were leased out.
“This is close to the RM100mil we target for our TSM this year.
“For this segment, the customers are mainly in South-East Asia markets,” he added.
In 2024, the group plans to spend about RM30mil to upgrade the gaming machines under the TSM programme, added Lim.
He also said the tourism and hospitality industries were expected to continue recovering, supported by the increase in international travel, especially in the regions where the group operates.
“Given the favourable market outlook, the group expects to achieve a strong performance for the financial year ending Dec 31, 2023, underpinned by the sturdy orders secured to date, despite facing inflationary pressure on its operating costs,” explained Lim.
In 2022, the group sold some 1,100 machines in the region, generating RM172mil, which had exceeded its initial target of 1,000 units.
Also, RGB had recently recovered RM5.8mil from insurance for the machines that were destroyed in a fire incident in Cambodia a year ago.
For the nine months of 2023 that ended on Sept 30, the group generated RM62.8mil in after-tax profit on the back of an RM599.2mil revenue compared with an after-tax loss of RM4.9mil and RM152.7mil turnover in the same corresponding period a year ago.
The revenue and pre-tax profit for the SSM division surged by 486% and 452% respectively, for the nine months ended Sept 30, 2023, compared with the previous year’s corresponding period, mainly due to an increase in the products sold.
The revenue and pre-tax profit for the TSM division also increased by 35% and 345% respectively, for the nine months ended Sept 30, 2023, compared with the previous year’s corresponding period, mainly due to the better performance and increased operating capacity in most outlets.
According to the Zion Market Research report, the worldwide market for slot machines is expected to expand at a 4.35% compounded annual growth rate between 2023 and 2030.
“The worldwide demand for slot machines generated an estimated US$9.5bil in income in 2022, with projections showing that figure rising to US$13.4bil by 2030.
“As more and more gambling establishments open throughout the world, demand for slot machines is expected to soar,” said the report.
The report also noted that the slot machine industry is poised to benefit from the anticipated increase in technical advancement in the following years.
“The introduction of innovative technology like touch displays, video slot machines, etc, in addition to an expanded library of games and a variety of payment methods including card payments, crypto coins and others, will drive demand for slot machines over the projection period,” the report added.
