Key Moments:
- Profit before tax fell 73 percent year-on-year to RM 5.5 million in the third quarter ended September 30, 2025
- Group revenue declined by 25 percent, reaching RM71.1 million during the period
- Technical Support and Management division shifted to a pre-tax loss, impacted by higher jackpot payouts and outlet closures
Third-Quarter Results Underscore Market Pressures
RGB International, headquartered in Malaysia and a primary supplier of gaming equipment, recorded a major downturn in earnings and revenue for the third quarter that closed on September 30, 2025. The period was marked by a combination of weaker sales, elevated jackpot payouts, and foreign exchange losses that strained every core business division.
Revenue and Profitability Take a Hit
The company’s profit before tax dropped 73 percent when compared to the same timeframe last year, sinking to RM 5.5 million (US$1.28 million) from RM20.4 million (US$4.74 million) in the prior year’s third quarter. Net profit contracted even more sharply, falling 78 percent to RM4.1 million (US$950,000). Revenue shrank by 25 percent to RM71.1 million (US$16.53 million), highlighting mounting industry headwinds.
| Financial Metric | Q3 2025 | Q3 2024 | Year-on-Year Change |
|---|---|---|---|
| Profit Before Tax | RM 5.5 million (US$1.28 million) | RM20.4 million (US$4.74 million) | -73% |
| Net Profit | RM4.1 million (US$950,000) | Not stated | -78% |
| Revenue | RM71.1 million (US$16.53 million) | Not stated | -25% |
Sales and Marketing Performance Softens
Revenue in the Sales and Marketing segment dropped 14 percent, totaling RM57.3 million (US$13.33 million), as a result of fewer product shipments. Profit before tax for this segment dipped to RM7.3 million (US$1.70 million), largely stemming from lower market demand during the period.
Technical Support and Management Division Posts Losses
The Technical Support and Management segment faced even greater challenges, as its revenue was halved to RM13 million (US$3.02 million). This unit swung from profitability to a pre-tax loss of RM372,000 (US$90,000). The downturn was driven by substantial jackpot payouts and the ongoing closure of several outlets in Poipet, both of which diluted performance.
Currency Volatility and Increased Costs Weigh on Results
Unrealized foreign exchange losses intensified the company’s financial strain, with unallocated expenses rising further during this quarter in comparison to the same period last year. The broad geographic footprint of RGB contributed to ongoing currency risks.
Quarter-on-Quarter Metrics Show Continued Weakness
Against the second quarter of 2025, the company also experienced a 25 percent sequential drop in revenue, totaling RM 94.9 million (US$22.07 million). Profit before tax declined 66 percent to RM 16.1 million (US$3.74 million). Both principal divisions delivered weaker results due to sustained modest sales and subdued gaming activity.
Management Maintains Measured Optimism
RGB International conveyed a cautiously optimistic stance regarding its medium- to long-term trajectory. The company pointed to resilient demand in the region and growth prospects in primary markets like the Philippines as signs supporting the potential for recovery. These third-quarter outcomes emphasize the unpredictability confronting gaming equipment providers in Southeast Asia, as operational and sales challenges persist across the sector.
The company continues to face an uncertain operating environment and must adapt to shifting conditions to regain momentum in all business units.
- Author
Daniel Williams
