KUALA LUMPUR (Nov 26): Magnum Bhd was back in the black for its third quarter ended Sept 30, 2020 (3QFY20), posting a net profit of RM30.26 million or 2.13 sen per share from a net loss of RM23.67 million or 1.67 sen per share in the immediate preceding quarter.

The number forecast operator (NFO) said the reversal of 2QFY20’s losses in its most recent financial quarter was due to the better performance achieved by its gaming division.

The gaming division posted a profit before tax (PBT) of RM49.63 million in 3QFY20, from a loss before tax of RM23.84 million in 2QFY20. Revenue for the division surged almost tenfold to RM485.57 million, from RM50.51 million in 2QFY20.

It saw 42 draws in 3QFY20 from the six executed in 2QFY20 following the resumption of gaming activities on June 17, 2020, during the Recovery Movement Control Order (RMCO) period.

It declared a third interim dividend of two sen per share, raising its total dividend payout to date to 6.54 sen. The latest dividend is payable on Dec 24, 2020.

In contrast, it declared a four sen dividend in 3QFY19, with total dividend for the nine months ended Sept 30, 2019 (9MFY19) standing at 13 sen per share.

Total revenue for the quarter skyrocketed to RM485.71 million, from RM50.55 million in 2QFY20.

However, on an annual basis, Magnum saw a 36.97% decline in its net profit from the RM30.26 million or 3.37 sen per share declared in 3QFY19. 

Likewise, revenue declined 25.52% from RM652.1 million in 3QFY19. 

While it had conducted the same number of draws in both 3QFY20 and 3QFY19, the decline in earnings was attributed to standard operating procedures (SOPs) as a result of Covid-19, and lower disposable income from punters are a result of the prolonged pandemic.

For 9MFY20, cumulative net profit declined by 65.91% to RM62.19 million, from RM182.44 million a year prior. Revenue for the period was also down by 44.8% at RM1.15 billion, from RM2.07 billion in the corresponding nine months last year.

“Our average sales per draw is expected to recover further in the fourth quarter of the year, but the overall performance will still be below the pre-MCO levels,” it said on its prospects.

Magnum shares finished 0.45% or a sen lower at RM2.20, valuing it at RM3.16 billion. It saw 438,600 shares done.