RGB upbeat on regional casino boom

    Shares in RGB, formerly Dreamgate Bhd are up by 50 percent in the year-to-date to reach 16.5 sen. More than 114 million shares changed hands in the last day of trading in the company which is looking to cash in on the casino boom in the Asian region.RGB has targeted expansion outside Manila in the Philippines to cities such as Cebu and Clark, and has recently moved into the Democratic Republic of Timor-Leste where it has acquired a 30 percent stake in Timor Holding, Lda. RGB provides techincal support and management to a number of properties in Cambodia and Laos.Group chief operating officer Steven Lim told a briefing, “The Philippines is still a very exciting market for us. Besides slot machines, we see opportunities in the sales of Bingo machines,”The group has an exclusive distributorship for Zitro Bingo Machines in the Philippines and other Asian countries. RGB represents R. Franco, WMS, SHFL, GPI, and Spielo. It also has a technical support segment (TSM) agreement with AB Leisure Exponent Incorporated to operate Bingo outlets in the Philippines, where 251 Bingo machines 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 said.“Supported by the opening of new casinos in the region, our earnings before interest, taxes, depreciation and amortization should improve in 2015 theoretically,” he said, noting that the timing of the opening of new casinos was beyond its control.The company is also looking to form more strategic partnerships with manufacturers. Company revenue at RM96.88 million in Q1 of 2014 was 49 percent higher on Q1 2013. Net profit more than doubled to RM9.25 million from RM4.27 million a year ago.