KUALA LUMPUR (Aug 20): Magnum Bhd (KL:MAGNUM) announced that it plans to progressively resume its operations in Kedah, as it posted an 8.4% growth in its second-quarter net profit compared with the same period a year ago, as profit margin expanded amid lower gaming prize payouts.

Subject to renewal and issuance of the requisite business premises licences and necessary administrative approvals, the number forecast operator (NFO) said in a bourse filing that the resumption will involve 13 outlets, which had been suspended since January 2023.

This follows the Federal Court's dismissal of the Kedah state government’s application for leave to appeal against the Court of Appeal’s decision on the non-renewal of business premises licences for pool betting and lottery operations in Kedah.

“Accordingly, the Court of Appeal’s decision, which upheld the High Court’s ruling that the state government’s blanket decision to cease the renewal of such licenses was unconstitutional and unlawful, remains in force,” Magnum noted.

The group saw its net profit for the quarter ended June 30, 2026 (2QFY2026) rise to RM67.36 million from RM62.13 million for 2QFY2025, even as revenue slipped 2.7% to RM555.32 million from RM570.76 million on fewer draw days.

A second interim dividend of 3.5 sen per share, to be paid on Sept 23, was declared.

Earnings for the first six months of FY2026 came in at RM111.21 million, little changed from RM111.9 million in the corresponding first six months of FY2025, while revenue dropped 7.3% to RM1.13 billion from RM1.22 billion.

The group remains cautiously optimistic about prospects of the gaming business for the rest of FY2026, despite the challenging operating environment arising from ongoing geopolitical tensions in the Middle East, cost-of-living pressures and cautious consumer sentiment.

Magnum shares closed unchanged at RM1.26 on Thursday, valuing the company at RM1.81 billion.