Magnum 1Q net profit up 9.97% on lower prizes payout, pays 5 sen dividend

magnum-berhad

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KUALA LUMPUR (May 28): Number forecast operator Magnum Bhd's net profit jumped 9.97% to RM90.76 million or 6.4 sen per share for the first quarter ended March 31, 2015 (1QFY15) from RM82.53 million or 5.8 sen per share a year ago, on higher gaming profit mainly due to lower prizes payout.

Quarterly revenue, however, fell slightly to RM791.28 million from RM792.55 million in 1QFY14 on lower gaming sales for the current quarter due to one less draw which was mitigated by higher sales from the jackpot game and contribution from the new game.

Magnum also declared a first interim dividend of 5 sen per share, payable on June 26, 2015.

On prospects, Magnum said it expects the operating environment in the immediate future to be challenging.

It noted that gaming sales has recorded a decline following the implementation of the goods and services tax (GST) on April 1, 2015.

Magnum (fundamental: 1.7; valuation: 1.4) shares closed 0.74% or 2 sen lower at RM2.68 today, with 274,300 shares traded, giving it a market capitalisation of RM3.83 billion

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations)