KUALA LUMPUR (May 21): Magnum Bhd recorded an almost 80% surge in net profit for the first quarter ended March 31, 2018, in line with higher gaming revenue and lower prizes payout ratio.

In its bourse filing, the group said the net profit came in at RM54.94 million, representing a 79.7% increase over the RM30.57 million registered a year earlier.

Earnings per share improved to 3.86 sen, from 2.15 sen previously.

Quarterly revenue, meanwhile, grew 2.2% to RM712.35 million from RM697.08 million.

The group declared a first interim single tier dividend of four sen per share, payable on June 29.

In notes accompanying its financial results, Magnum said its gaming revenue — stated net of the goods and services tax (GST) — grew due to higher sales from its 4D Jackpot game, arising from higher 4D jackpot prize.

The group also attributed the growth in profit to the lower prizes payout ratio during the quarter.

Magnum said this is the third consecutive quarter the group has seen sales improving.

In the note, it highlighted several initiatives taken this year, which include a re-branding and re-imaging exercise in January, besides the launch of new game called Magnum Life at end-April, to replace the less successful 4D Powerball game, and to capture new market segments.

Magnum said there will be enhanced disposable income of players from the new Pakatan Harapan government’s pledge to impose a zero-rated GST effective June 1, and the proposed reintroduction of petrol subsidy.

“The board is optimistic that the financial performance of the company for FY18 will be at least as good as that for FY17,” it added.

Magnum’s share price closed two sen or 0.95% higher at RM2.12, with a market capitalisation of RM3.05 billion.