KUALA LUMPUR (May 19): Magnum Bhd’s net profit jumped 122% to RM16.66 million for the first quarter ended March 31, 2022 (1QFY22) from RM7.52 million a year ago, mainly due to higher contribution from its gaming division.

Earnings per share for 1QFY22 increased to 1.16 sen, from 0.52 sen for 1QFY21.

Revenue for the quarter also rose 31% to RM501.04 million from RM383.88 million a year ago, which was adversely affected by the Movement Control Order 2.0, whereby only sales outlets in Sarawak were allowed to operate from Jan 13 to Feb 14, 2021.

The group declared a first interim dividend of one sen per share, payable on June 24.

In a bourse filing on Thursday (May 19), Magnum said it is cautiously optimistic that FY22 will be a year of recovery.

"As the country moves towards the endemic phase, public confidence seems to have recovered as more social and economic activities begin to normalise, and these will translate into opportunities for a stronger rebound of the gaming industry from FY22.

“The ongoing investments in the transformation programme that sets the foundations to futureproof the business starts to bear some positive results, as we have started the process of digitalising and streamlining our operational processes in stages to improve both the efficiency, as well as effectiveness of these processes," it said.

“Moving forward, to match the rapid evolution of our customers’ behaviour, we have introduced many digital experiences that augment all touchpoints and ultimately define a lifetime journey that drives satisfaction towards our brand, as well as our products. We look forward to the government’s continued efforts in clamping down on illegal betting activities, which will ultimately increase the revenue and market share of the legal NFO [number forecast operator] industry in general and Magnum's in particular."

Magnum shares closed up one sen or 0.56% at RM1.81 on Thursday, with 217,800 shares done. It's market capitalisation stood at RM2.6 billion.