KUALA LUMPUR: Magnum Bhd witnessed a robust surge in its first-quarter net profit, soaring by 64.71 per cent to nearly RM26 million from RM15.78 million in the preceding year, driven by stronger earnings from its investment holdings division.
The company reported a 7.03 per cent increase in revenue to RM584.4 million in the quarter ended March 31, 2024 (Q1 FY2024), from RM546 million in Q1 FY2023, attributed to higher gaming sales per draw, according to its stock exchange filing.
Despite a higher prize payout ratio for the current quarter compared to the previous year's corresponding quarter, the gaming pre-tax profit surged by RM1.1 million to RM34.5 million, primarily due to lower operating expenses and finance costs, it said.
In contrast, Magnum's investment holdings and other divisions recorded a pre-tax profit of RM3.6 million, a significant improvement from the RM6.3 million pre-tax loss in Q1 FY2023.
This turnaround was mainly attributed to a gain on disposal of quoted investments and a fair value gain on investments.
Earnings per share for Q1 FY2024 rose to 1.81 sen from 1.10 sen.
On prospects, Magnum reiterated its commitment to delivering long-term, sustainable growth for all stakeholders.
The company highlighted its 'Magnum Beyond 2025' transformation programme, positioning its leadership to drive continued growth towards building a sustainable future.
This optimism is grounded in the company's dedication to digital innovation, enhanced customer-centric experiences, fostering excellence within its staff, and advancing a sustainable business proposition.
"We are confident in our core business model and strategies and believe that the company is well positioned to capitalise on future growth opportunities," it said.
Shares of Magnum closed unchanged at RM1.18 on Tuesday, maintaining the group's market capitalisation at RM1.67 billion.