Magnum warns illegal operators hurting profit

    Malaysian lottery operator Magnum Bhd said it expects the rest of the financial year to be “challenging,” as higher interest rates and the rising cost of living dampen consumer spending.
    It also said aggressive discounting and the higher prize payout structure from illegal operators is also eating into its business.
    For the second quarter, the group reported a rise in pre-tax profit to RM94.6 million ($29.9 million) from RM86.3 million in the same period a year ago, but noted that profit had been on a declining trend for two quarters because of lower gaming revenue.
    Gaming pre-tax profit fell to RM86.2 million from RM86.6 million, hurt by illegal operators.
    The investment holdings and others division reported a pre-tax profit of RM8.4 million in the current quarter as compared to a loss of RM0.2 million in the previous year due mainly to fair value gain of quoted investments and lower operating expenses.