RGB International expects RM50mil more in turnover

GEORGE TOWN: Electronic gaming machines and equipment manufacturer RGB International Bhd is expecting an additional RM50mil in turnover this year from five concessions and leasing deals inked last year and the year before.

Group managing director Datuk Chuah Kim Seah said that of the five, four were signed in 2017 and one was signed in 2016.

“The concessions are for DNA Star Vegas in Cambodia, Philippines Amusement and Gaming Corp (Pagcor) in the Philippines, Golden Sands Dili in Timor Leste, SKKS Slot Club in Laos, and Casino Royale in Kathmandu,” he told StarBiz.

RGB will be supplying DNA Star Vegas with 900 new gaming machines.

“We have delivered 80 units already. Under the agreement we signed, RGB will also manage all the existing machines, which adds up to 1,500 units,” he said.

Chuah said RGB would supply a wide area progressive jackpot system to Pagcor to link all its 160 gaming machines in 14 casinos nationwide.

“We are supplying 250 units to Golden Sands Dili in Timor Leste by the second quarter. For SKKS Slot, we are providing 150 new machines for their expansion.

“So far, we have delivered 60 units to SKKS Slot.

“We have delivered 80 machines out of 200 machines agreed upon to Kathmandu,” he said.

On sales, Chuah said RGB would deliver 679 machines and 25 units of card shuffling and chip sorting machines with a value of RM92mil to an integrated resort in Vietnam.

“The deal was signed in 2017 but is being implemented now because the deposit has just been received.

“These machines will be delivered by mid-April,” he said.

Moving ahead, RGB plans to expand its presence in the countries that would benefit from the One Belt, One Road initiative.

“We expect these countries, most of which are locations where we already have a presence, to boom with investments that they will attract in the near future.

“This is why we are now recruiting new staff to handle the expansion of our business in the One Belt, One Road region,” he said.

Chuah expected net profit to grow by double digits in percentage terms for the financial year ended Dec 31, 2017 (FY17) over that of FY16.

RGB derives 95% of sales from the AsiaPacific region.

Besides the RGB brand name, the company also distributes international brands in various Asian countries.

According to Technavio’s Global Casino Gaming Equipment Market 2017-2021 report, the global casino gaming equipment market is expected to grow at a compounded annual growth rate of 15.25% over the next four years.

The report said countries such as Japan are aiming to legalise casino gaming because it generates high revenue contribution globally.

An increasing middle-class population and rising disposable income will also fuel market growth.