Malaysian-based gaming equipment supplier RGB International Bhd fell to a loss of MYR12.4 million (US$3.0 million) in the three months to 30 September 2020, down from a profit of MYR11.9 million (US$2.9 million) over the same period last year.
With COVID-19 continuing to impact its business across Asia, RGB reported a 63% year-on-year decrease in revenue from its Sales and Marketing division to MYR30.0 million (US$7.4 million) due to a lower number of products sold.
It also saw a 69% decline in revenue from the Technical Support and Management division to MYR9.6 million (US$2.4 million) due to the suspension of certain outlets and capacity constraints in those now open as a result of social distancing measures. The segment suffered a loss before tax of MYR14.4 million (US$3.5 million), “mainly due to lower revenue and higher depreciation on new machines purchased in previous year end and beginning of this year as compared to previous year’s corresponding quarter,” RGB explained in its results announcement.
Commenting on its short-term prospects given the ongoing pandemic, RGB said it “sees a slow recovery in the gaming market and remains cautious on its performance for the remainder of the year due to the prevailing uncertainties in the economy and travel restrictions amid the pandemic.”
Having earlier this year begun diversifying its revenue streams by supplying social distancing products to gaming outlets, RGB added, “The Group is embarking on new avenues by maximizing its existing resources to increase the revenue during this unprecedented period.”