KUALA LUMPUR (May 19): Magnum Bhd's net profit for the quarter ended March 31, 2021 (1QFY21) fell 86.48% year-on-year to RM7.52 million from RM55.59 million, on higher number of cancelled draws due to the Movement Control Order 2.0 (MCO 2.0), which also coincided with its peak period — the Chinese New Year.

Some 18 out of 45 draws were affected due to MCO 2.0, which was enforced from Jan 13 to March 4 for selected states and federal territories, including Selangor, Penang and Kuala Lumpur, as opposed to six out of 36 draws being impacted in 1QFY20 under the nationwide MCO 1.0, Magnum said in its results filing.

Its quarterly revenue sank 37.02% y-o-y to RM383.88 million from RM609.54 million. Earnings per share dropped to 0.52 sen from 3.91 sen in the previous corresponding quarter. No dividend was declared, compared with 2.5 sen per share for 1QFY20.

“The current (reporting) quarter's MCO 2.0 also coincided with our highest sales period during Chinese New Year,” Magnum said, adding that the lower gaming profit was also due to a higher prize payout. Its performance was affected by tight standard operating procedures (SOPs) as well as the lower disposable income of its players due to the pandemic, it added.

Under the latest MCO 3.0, which is scheduled to last from May 12 to June 7, Magnum’s gaming outlets are allowed to operate but it expects its players to be more “apprehensive” about visiting its outlets.

“For the business environment to return to normalcy, it would be conditional on the success of various MCO implementations to curtail the spread of the infection, the timely rollout of the National Covid-19 Immunisation Programme and there shall not be a MCO being imposed on a nationwide basis,” it added.

Magnum’s share price fell three sen or 1.44% today to close at RM2.05, giving it a market capitalisation of RM2.95 billion.