KUALA LUMPUR (Feb 20): Magnum Bhd’s fourth quarter net profit fell 22.79% to RM56.29 million, from RM72.91 million a year earlier, on weaker performance from its gaming division.

Earnings per share for the quarter ended Dec 31, 2019 (4QFY19) declined to 3.96 sen from 5.12 sen previously, the group said in a filing today.

Magnum declared a dividend of three sen per share, bringing its dividend for the full financial year (FY19) to 16 sen per share, from 15 sen in FY18.

For the fourth quarter, Magnum said it saw three lesser draws compared with the same period last year, while it also recorded lower 4D Jackpot sales. The weaker performance was slightly offset by stronger non-core segment.

The weaker gaming division dragged quarterly revenue to RM630.93 million, lower by 12.75% from RM724.41 million in the previous corresponding quarter.

Despite the weaker final quarter, Magnum closed its FY19 with a net profit of RM238.73 million, as against RM105.39 million in FY18, as its income tax expense halved from the year before.

Pre-tax profit in FY19 grew 9.53% to RM343.21 million from RM313.33 million in FY18, thanks to lower expenses incurred as revenue remained flattish at RM2.7 billion.

Operations-wise, the gaming division's profit declined in the year, no thanks to higher prizes payout. This was offset by much narrower losses in its non-core segment.

On prospects, Magnum said the ongoing rebranding exercise will have minimal financial impact on the group’s FY20 performance.

It also welcomes the proposed implementation of a new stringent law, which imposed mandatory jail, as well as hefty penalty on both the seller and buyer in the illegal gaming ring. “This is expected to contribute positively to the top line of the company,” it said.

Magnum’s shares closed one sen or 0.4% higher at RM2.54 today, giving the group a market capitalisation of RM3.65 billion.