KUALA LUMPUR (Aug 22): Magnum Bhd's net profit for the second quarter ended June 30, 2019 (2QFY19) grew 55% to RM74.42 million from RM48.05 million in the corresponding quarter last year, due to better performance seen in its gaming segment.

Quarterly revenue rose 11% to RM666.4 million from RM600.39 million in 2QFY18, its stock exchange filing today showed. Earnings per share (EPS) rose to 5.23 sen from 3.38 sen previously.

The group declared a second interim dividend of 5 sen per share — versus 3 sen in the same quarter a year ago — payable on Sept 27, with the entitlement date falling on Sept 19, bringing its year-to-date dividend payout to 9 sen from 7 sen in the same period last year.

The group said its gaming sales came in at RM666.23 million in 2QFY19, up 11% or RM66 million from RM600.24 million a year ago. "The increase, despite two [less] draws, is mainly due to higher sales from the 4D Jackpot game arising from a prolonged jackpot run and sales generated from 4D classic game as the result of a more sustained enforcement by authorities on illegal operators," Magnum said.

As a result of the higher gaming sales, the group's gaming pre-tax profit rose to RM103.22 million from RM68.25 million previously.

The stronger second quarter lifted its half year net profit by 31% to RM134.43 million from RM102.99 million in the same period last year, with revenue rising 8% to RM1.42 billion from RM1.31 billion. EPS rose to 9.45 sen from 7.24 sen.

Although 2019 will have a reduced number of special draws, Magnum said it is optimistic that the growth in per draw revenue, as observed in 1HFY19, will offset the downward pressure caused.

"Together with the sustained momentum of enforcement by the authorities on illegal operators and our ongoing rebranding and reimaging exercise, the board expects the financial performance for the financial year 2019 to be better than that of 2018," the group said.

The counter closed 0.36% or a sen lower at RM2.78, giving the gaming company a market capitalisation of RM4 billion — with 1.02 million shares traded.