Number Forecast Operators should be bracing for more challenging times ahead as disposable income among the working class get squeezed by the rising cost of living.
Magnum’s net profit for Quarter 3 (July – September 2013) fell 10.49% to RM64.77 mil from RM72.37mil a year earlier due to lower debt cost and a better prize payout. Total sale turnover also decreased 6.26% to RM702.39 mil compared with RM749.31mil previously. Magnum nine months net profit also plunged 26.09% to RM214.87mil versus RM290.71mil compared to last year corresponding period. Revenue also fell by 4.17%.
PublicInvest Research said that Magnum’s revenue per draw is also on a downtrend, declining 1.9% despite having the highest 4D jackpot payout accumulating to RM22mil. It is noted that all three Malaysia NFO operators has posted weak topline numbers in the third quarter.