Magnum says 1Q net profit up 65%, declares 1.5 sen dividend

KUALA LUMPUR (May 28): Magnum Bhd (KL:MAGNUM) said its first quarter net profit rose 64.71% to RM25.99 million from RM15.78 million a year earlier, boosted by higher earnings posted by its investment holdings division.

Earnings per share for the quarter ended March 31, 2024 (1QFY2024) increased to 1.81 sen from 1.10 sen, according to the group's bourse filing.

Revenue rose 7.03% to RM584.4 million from RM546 million in 1QFY2023 on higher gaming sales per draw, the group said.

"Despite a higher prizes payout ratio for the current quarter as compared to the previous year's corresponding quarter, the gaming pretax profit increased by RM1.1 million to RM34.5 million in the current quarter compared to RM33.4 million recorded in the previous year's corresponding quarter mainly due to lower operating expenses and finance cost," said Magnum.

The group's investment holdings and others division, meanwhile, recorded a pre-tax profit of RM3.6 million compared with a RM6.3 million pre-tax loss in 1QFY2023 mainly due to a gain on disposal of quoted investments, and a fair value gain on investments versus a fair value loss previously.

Magnum declared a first interim dividend of 1.5 sen per share, with an ex-date of June 12 and payment date of June 25.

On its outlook, the group said it remained steadfast in its commitment to delivering long-term sustainable growth for all stakeholders.

"Central to this is our ‘Magnum Beyond 2025’ transformation programme in which the leadership of Magnum is well positioned to deliver continued growth as we forge ahead towards building a sustainable future.

"This optimism is anchored in our continued commitment to digital innovation, enhanced customer-centric experiences, fostering and unlocking excellence within the group’s staff force and spearheading a sustainable business proposition,” added Magnum.

Shares of Magnum closed unchanged at RM1.18 on Tuesday, giving the group a market capitalisation of RM1.67 billion.