KUALA LUMPUR (Aug 21): Number forecast operator Magnum Bhd (KL:MAGNUM) reported a 36.7% increase in net profit to RM62.13 million for the second quarter ended June 30, 2025 (2QFY2025), up from RM45.44 million a year earlier, mainly due to lower prize payout and savings in interest expenses due to a reduced amount of outstanding medium-term notes (MTNs).

Earnings per share for 2QFY2025 increased to 4.33 sen from 3.16 sen in 2QFY2024.

Revenue for the quarter, however, declined 5.2% to RM570.76 million from RM601.94 million a year earlier, on lower gaming revenue.

The group declared a second interim dividend of 2.5 sen per share for FY2025, payable on Sept 24. This brings the total dividends declared for the year to five sen per share, up from 3.5 sen in FY2024.

In a filing with Bursa Malaysia on Thursday, Magnum said its 2QFY2025 gaming revenue of RM570.7 million was RM31.2 million lower than the RM601.9 million recorded a year earlier, mainly due to a longer Jackpot run in 2QFY2024.

For the cumulative six-month period (1HFY2025), Magnum reported a 56.7% increase in net profit to RM111.9 million from RM71.43 million a year earlier, while revenue grew marginally by 2.8% to RM1.22 billion from RM1.19 billion in 1HFY2024.

The gaming division also reported higher revenue of RM1.22 billion in 1HFY2025 compared with RM1.19 billion in 1HFY2024, largely driven by increased sales of 4D Jackpot and 4D Jackpot Gold, especially in the first quarter of 2025.

Looking ahead, Magnum anticipates a challenging trading environment in the second half of the year amid persistent illegal lottery activities.

"The successful roll-out of our upgraded gaming system in July 2025 provides mitigation towards the impact of these conditions. With our focus on operational excellence, digital innovation, customer-centric strategies and disciplined cost management, the board of directors is cautiously optimistic that the gaming business will remain positive for the rest of the financial year," it said, adding that it is reducing its outstanding MTNs to lower financing costs and strengthen the balance sheet.

As at June 30, 2025, Magnum’s outstanding MTNs stood at RM724.29 million.

On Thursday, Magnum shares closed up one sen or 0.75% at RM1.35, giving the company a market capitalisation of RM1.94 billion. The stock has gained 5.47% year-to-date.