PETALING JAYA: RGB International Bhd

is expected to see higher earnings in the coming quarters supported by a projected pickup in orders over the remainder of 2025.

In the first quarter of financial year 2025 (1Q25), the group delivered 500 electronic gaming machine units, a sharp decline compared to around 1,200 units in the same period last year.

The lower delivery volume was primarily due to geopolitical uncertainties, including tariffs introduced by the Trump administration, and a more cautious stance by clients ahead of the mid-term elections in the Philippines.

Despite the soft start, Phillip Capital Research expects order momentum at RGB to improve throughout the year, driven by order replenishment and expansion activities in the Philippines.

Key developments include two VIP club upgrades, Phase 2 of the Philippine Amusement and Gaming Corporation (PAGCOR) contracts, new integrated resorts and ongoing replacement demand across the region.

RGB posted a net profit of RM12.39mil or a basic earnings per share (EPS) of 0.8 sen for 1Q25 ended March 31.

This was lower than RM22.18mil net profit or 1.44 sen EPS it made in the same quarter of the preceding year.

Revenue in the period fell significantly to RM73.57mil from RM210.11mil in 1Q24.

RGB’s core profit after tax and minority interest came in at RM14mil and was at only 11% of Phillip Capital’s forecast. The weak number was mainly due to a sharp drop in revenue recognition stemming from lower PAGCOR orders.