Malaysia gaming equipment supplier RGB International saw a 47 per cent fall in profit to MYR3.7m (US$863,500) for the three months to 31 March 2020, due in main to the coronavirus pandemic.
The company manufacturers electronic gaming mac. It has staff in Malaysia, Cambodia, the Philippines, Macau, Singapore, Lao, Vietnam, Timor-Leste and Nepal. The fall in profit came despite revenues growing by 48 per cent to MYR77.4m (US$18.1m), including a 101 per cent increase in RGB’s Sales and Marketing division to MYR44m (US$10.3m).
RGB has started distributed social distancing products for gaming venues.
RGB Managing Director Datuk Seri Chuah Kim Seah said: “In view of the requirement for social distancing measure in the respective countries, the group is exploring the possibility of remote gaming solution as an alternative for land-based gaming operators. We are also distributing social distancing products such as machine partition and cashless payment solutions for gaming outlets. With the outbreak of Covid-19 pandemic, the business climate for 2020 is challenging, not only for us, but for operations across various industries across the globe as well. The pandemic has led to widespread imposition of travel restrictions, movement control on people and suspension of business operations to curb the spread of the virus.”
RGB said the drop in profit was ‘due to the additional depreciation of the new machines placed in new and existing outlets and also due to loss of revenue during the lockdown period imposed by various countries starting from mid-March 2020 as part of the measures to prevent the spreading of COVID-19.’
It added: “The financial impact of the COVID-19 pandemic could be significant to the Group and the Group is in the process of assessing the financial impact of COVID-19 pandemic since ongoing developments remain uncertain at this point in time. Gaming establishments in Timor-Leste and Vietnam have resumed operations starting from May 2020 while some casinos and VIP clubs in the other regions where the Group operates have also begun to resume operations starting from mid-June 2020.
“In the meantime, the Group continues to implement various cost control measures across the regions to contain its expenditures during this lockdown period. The Group has also put in place stringent health and precautionary measures at all its properties to comply with the relevant standard operating procedures and to ensure the safety and well-being of its employees and visitors at all times.”