RGB International Bhd is targeting to sell about 4,000 gaming machines in the overseas market this year, valued at an estimated RM500 million ($107 million). Group managing director Datuk Seri Chuah Kim Seah noted that the sales were mainly for the group’s customers in Cambodia, Laos, Vietnam, Timor Leste and the Philippines.
Speaking to Malaysian media The Star, Chuau said that the company expects to deliver half of the 4,000 machines RGB has in hand by mid-2023. Additionally, under its technical and support management segment, the group has also leased out about 5,000 gaming machines, which will generate some RM100 million ($22 million) in revenue this year. “For this segment, the customers are mainly in South-East Asia,” the executive added.
In 2022, the Malaysia-based electronic gaming machines manufacturer sold 1,100 units in the region, generating RM172 million ($37.8 million), which exceeded its initial target of 1,000 units. However, a fire incident in Cambodia last year led RGB to write off RM5.8 million ($1.24 million) in machines, although yearly results were still positive. “After the write-off, we still made RM3.9 million ($858,936) in net profit,” Chuah said.
The current year has been off to a solid start. For the first quarter of 2023, the group generated RM10 million ($2.2 million) in net profit, up 418% year-on-year. The business also saw consolidated revenues rise by 197% Y-o-Y to RM95.2 million ($20.7 million).
However, the company says it may see impacts from external factors on its operations during the year. In its latest 2022 annual report, RGB stated that the group’s main business risks include intensifying competition, changes in the regulations and policies as well as foreign exchange rate fluctuation.
“The group’s business is in a competitive environment and faces competition from other gaming suppliers and operators,” the report said, as per the cited source. “With our businesses located in various countries in Asia, changes in each country’s regulations and policies may impact our operations.”