KUALA LUMPUR: After a four-year hiatus, gaming machine maker RGB International Bhd is back on the investors’ radar with punters chasing up the stock on high hopes that it will be able to cash in on the casino boom in the region.
The company, previously known as Dreamgate Corp Bhd, had gained a foothold in Democratic Republic of Timor-Leste. In the Philippines, it is targeting to expand business outside Manila.
The company is also looking at other new markets.
It entered into the Democratic Republic of Timor-Leste via the acquisition of a 30% stake in Timor Holding, Lda. As for its existing markets, such as the Philippines, it is targeting other cities such as Cebu and Clark besides Manila.
“The Philippines is still a very exciting market for us. Besides slot machines, we see opportunities in the sales of Bingo machines,” group chief operating officer Steven Lim told a briefing yesterday.
The group has received an exclusive distributorship of Zitro Bingo Machines in the Philippines and other Asian countries.
Through a technical support segment (TSM) agreement with AB Leisure Exponent Incorporated to operate Bingo outlets in the Philippines, there are 251 Bingo machines that generated some RM100,000 in revenue for RGB as of June.
“We expect to place 210 more Bingo machines in the country as we enter the second half,” Lim noted.
After recording a better first half for the financial period ended June 30, 2014 compared to a year earlier, it is working to sustain the momentum into the second half and beyond,
“Supported by the opening of new casinos in the region, our earnings before interest, taxes, depreciation and amortisation should improve in 2015 theoretically,” he said.
However, he was quick to note that its prospects were subject to the timing of the launches of new casinos, which was beyond its control.
The company is also looking to form more strategic partnerships with manufacturers.
“We are in talks with our partners to form strategic alliances for our machine concession programmes and TSM so that we can continue to expand our business without forking out high capital expenditure,” he said, adding that the company had learnt from its past experiences.
Shares in RGB has jumped 50% year-to-date to 16.5 sen with more than 114 million shares changed hands yesterday.
The company raked in RM96.88mil or 49% higher compared with RM65.06mil in the first half 2013. Its bottom-line rose with the higher revenue and more than doubled to RM9.25mil from RM4.27mil a year ago.
A large portion of its topline was attributed to the 600 over slot machines it sold in the first half and it is aiming to sell another 600 in the second half of the year.
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