The company is to share its financial results for the fourth quarter of 2024 on February 26.
Malaysia.- Singaporean financial services firm Phillip Capital has reported that RGB International (RGBI) is expected to announce its strongest quarterly results to date on February 26. Analysts have forecast core earnings of RM51m (US$11.4m) for the fourth quarter of 2024, pushing total earnings for the year to RM108m. That would be a rise of 91 per cent in year-on-year terms.
The growth is mainly attributed to the delivery of 1,968 electronic gaming machines to the Philippine Amusement and Gaming Corporation (PAGCOR), valued at US$81m. Phillip Capital has given RGB a “buy” rating with a target price of 71 sen. It based the recommendation on an estimated profit growth rate of 32 per cent per year from 2023 to 2026.
It believes RGB is well-positioned to capture 60 to 70 per cent of new orders from the Philippines. Meanwhile, casino gambling in the UAE and Japan is expected to expand the global market for electronic gaming machines by 17,000 units between 2024 and 2027. Meanwhile, the Thai cabinet has approved a draft bill to legalise casinos, and RGB is working on establishing a new subsidiary there. And in Cambodia, RGB has entered into a business agreement with FIRM 614.
Phillip Capital forecasts that RGB will sell between 4,500 and 5,500 units from 2024 to 2026.
For the third quarter of the year, revenue was MYR94.2m (US$21.1m). That’s a decline of 44.7 per cent in year-on-year terms and 5.4 per cent sequentially. Some MYR66.3m (US$14.8m) came from sales and marketing of products, down 51.8 per cent from the same period last year.
