Malaysian-based gaming equipment supplier RGB International Bhd fell to a loss of MYR4.4 million (US$1.1 million) in the three months to 31 March 2021, a near 200% decline from profit of MYR4.6 million recorded a year earlier.
The impact of the COVID-19 pandemic was felt across all business segments, with the Sales and Marketing (SSM) division suffering a 61% fall in revenue to MYR17.0 million (US$4.1 million) and 70% fall in profit before tax to MYR2.4 million (US$582,000) due to fewer products being sold.
Likewise, revenue from the Technical Support and Management (TSM) division dropped 48% to MYR17.0 million (US$4.1 million) with a loss of MYR4.7 million (US$1.1 million) due to TSM outlets operating at a limited capacity. However, RGB said that revenue and loss before tax for the TSM division had improved by 14% and 46% respectively in 1Q21 compared with the December quarter as a result of more outlets resuming operations, coupled with an increase in capacity.
Outlining its prospects for the year ahead, RGB said, Global economic conditions are expected to continue recovering on expectations of vaccine rollout and additional policy support in a few large economies.
However, we expect market conditions to remain volatile for 2021 due to the uncertainties amid the fluidity of the COVID-19 situation, especially in the countries where the Group operates. Barring unforeseen circumstances, the Group foresees some recovery in the gaming market and therefore a better performance for year 2021.
The Group continues to implement various cost control measures across the regions to contain its expenditures and at the same time, the Group is embarking on new avenues by maximizing its existing resources to increase revenue during this unprecedented period. The Group has also put in place stringent health and precautionary measures at all its properties to comply with the relevant standard operating procedures and to ensure the safety and well-being of its employees and visitors at all times.