KUALA LUMPUR (Nov 21): Magnum Bhd (KL:MAGNUM) reported a slight dip in net profit in the July-Sept period as income tax and other expenses increased, but cushioned by better income generated by its gaming and investment holdings and other segments.

Net profit in the third quarter ended Sept 30, 2024 (3QFY2024) was RM29.3 million, compared with RM29.8 million in the same period a year ago. Quarterly revenues were also flat at RM516.2 million, from RM520.47 million a year before.

Its tax expense more than doubled to RM23.28 million in 3QFY2024, from RM9.71 million a year ago, while other expenses surged 70% year-on-year to RM18.26 million, from RM10.77 million.

This was cushioned by higher other income, which more than doubled to RM13.57 million in 3QFY2024, from RM5.88 million a year before.

The gaming segment’s pre-tax profit rose 34% to RM45.81 million in 3QFY2024, from RM34.03 million, lifted by lower prize payout and reduction in interest expenses on lower amount of outstanding medium-term notes.

Its investment holdings and others segment also posted a 24% increase in pre-tax profit to RM7.22 million, from RM5.82 million previously, helped by higher interest income.

The group declared a third interim dividend of 1.5 sen per share, payable on Dec 18, 2024. This brings year-to-date dividends payout to five sen, up from four in the same period a year ago.

For the nine months ended Sept 30, 2024 (9MFY2024), net profit rose 12.9% to RM100.73 million, from RM89.21 million as cumulative revenue increased by 6.16% year-on-year to RM1.7 billion, from RM1.6 billion.

On its prospects, the board is optimistic that the gaming business will remain positive for the rest of the year, premised on the continued growth of its products and cost optimisation.  

The group's borrowings totalled RM738.98 million as at end-Sept 2024, of which RM189.83 million is short-term borrowings. While it had deposits, cash and bank balances of RM182.48 million.  

Shares in Magnum closed down one sen or 0.82% at RM1.21 on Thursday, giving the group a market capitalisation of RM1.74 billion.