KUALA LUMPUR (May 26): Magnum Bhd's net profit fell 24.2% to RM68.84 million or 4.84 sen a share for the first quarter ended March 31, 2016 (1QFY16) from RM90.76 million or 6.37 sen a share a year ago, with lower sales net of the goods and services tax (GST) on gaming supply and the higher prizes payout.

Revenue for 1QFY16 also came in 4.9% lower at RM752.56 million from RM791.28 million in 1QFY15, due to lower gaming sales as a result of the effects of GST.

"The decline was also due to intense competition from illegal operators, weak consumer spending and lower sales from the Jackpot games as Jackpot prize pools were lower this quarter compared to 1QFY15," said Magnum in a filing with Bursa Malaysia today.

Magnum also declared a first interim dividend of 4 sen per share for the financial year ending Dec 31, 2016, payable on June 24.

On prospects, Magnum said the challenging economic environment and rising costs which impacted household income will likely weigh on its gaming revenue.

"Amid such uncertainties in the economic environment, the board will strive to innovate (new) products, improve operational efficiency and enhance customer service to push sales for all our games," it added.

Magnum shares closed down one sen or 0.43% to RM2.34 today, for a market capitalisation of RM3.33 billion.