KUALA LUMPUR (Feb 27): Magnum Bhd (KL:MAGNUM) posted a 44.4% year-on-year rise in net profit for the fourth quarter, thanks mainly to a lower prize payout.

Net profit for the three months ended Dec 31, 2024 (4QFY2024) rose to RM52.08 million from RM36.06 million previously, according to the number forecast operator’s (NFO) bourse filing on Thursday.

This was despite a 5% slip in quarterly revenue to RM528.7 million versus RM556.35 million in 4QFY2023, as the lower topline was offset by a lower prize payout. Overall, cost of sales stood at RM433.24 million as compared to RM462.02 million previously.

The lower revenue was due to lower draws conducted during the quarter — 41 draws as compared to 42 draws in 4QFY2023.

Meanwhile, earnings were also further helped by lower interest expenses of RM9.35 million compared to RM11.17 million in 4QFY2023, attributed to lower medium-term notes outstanding.

Magnum declared a fourth interim dividend of 2.5 sen per share, payable on March 26. This brought the total dividend payout for FY2024 to 7.5 sen per share, higher than the six sen it declared in FY2023.

For FY2024, Magnum’s net profit increased 22% to RM152.81 million from RM125.27 million in FY2023, as annual revenue edged up 3.3% to RM2.23 billion versus RM2.16 billion previously.

Looking to FY2025, Magnum said it holds a positive outlook. This expectation is premised on the improving gaming sector as well as Malaysia’s economic fundamentals, the group added.

“While the board recognised that number forecast operators are still facing some form of market share challenges from illegal operators, however, with more concerted clampdown efforts from relevant authorities, the board is hopeful that it will mitigate as well as minimise the impact from these challenges,” it noted. 

Shares in Magnum ended unchanged at RM1.28 on Thursday, valuing the group at RM1.84 billion.