Magnum net profit up 10 percent in 15Q1

Malaysian lottery operator Magnum Bhd announced that net profit for 15Q1 rose 10 percent to RM90.8 million ($24.2 million), from RM82.5 million during the same period the year before.

The company’s profit grew as gaming sales dipped by RM1.2 million to RM791.3 million in the first three months of this year. 

“The decrease is due to one less draw which was mitigated by higher sales from the jackpot game and contribution from the new game,” the company said in a filing.

Gaming pre-tax profit increased by RM11.6 million from RM117.5 million recorded in the previous year corresponding quarter, to RM129.1 million achieved in the current quarter, mainly due to lower prizes payout. 

The company said that, following the implementation of the Goods and Services Tax on 1 April 2015, gaming sales have recorded a decline. 

“However, it is still early to assess the full impact of GST on sales especially the indirect impact on the disposable income and consumption patterns of consumers in the overall economy. In view of the above, the Board expects the operating environment in the immediate future to be challenging.”