Update Magnum's 3Q profit falls to RM64.8m, declares dividend of 5%

by **Cals** Thu 14 Nov 2013, 21:21

Update Magnum's 3Q profit falls to RM64.8m, declares dividend of 5%

Business & Markets 2013

Written by Zatil Husna of theedgemalaysia.com

Thursday, 14 November 2013 18:23

KUALA LUMPUR (Nov 14): Magnum Bhd’s profit fell by 10.5% year-on-year (y-o-y) for the third quarter ended Sept 30, 2013 (3Q13) due to lower contribution from its gaming sector.

The group recorded profit of RM64.8 million for 3Q13 compared to RM72.4 million in the same period last year. Revenue declined to RM702.4 million for the 3Q13, from RM749.3 million.
But the gaming company declared a third interim dividend of 5% or 5 sen per share.

For the nine month period (9M13), the group’s profit fell to RM214.7 million from RM290.1 million previously.

Revenue for the 9M13 also decreased to RM2.25 billion from RM2.35 billion in the same corresponding period in previous financial year.

The company said the decline in revenue in the third quarter was due to one fewer draw in its gaming segment.
Other factors were weaker economic environment, competition from illegal operators and weaker pull factors at outlets contributed to the lower revenue.

The group also factored in the loss from discontinued operations arising from the disposal of MPHB Capital Bhd.

“Included in the loss from discontinued operations is a net loss on disposal of RM69.8 million arising from the disposal of MPHB Capital Berhad, pursuant to the demerger and listing exercise and the gain from disposal of the stockbroking subsidiary,” it said.

On its outlook, the group views operating environment has become more challenging due to the government’s subsidy rationalisation programme, which has resulted in reduction in public’s general income.

“The board is cautiously optimistic of the prospect of the group and will work towards enhancing its revenue by creating market presence and through product branding,” it said.