RGB expects stronger 2H, eyes Macau machine replacement demand: report

Malaysia-listed gaming equipment supplier and distributor RGB International Bhd expects improved earnings in the second half of 2026, supported by stronger gaming-machine sales and a recovery in its technical support and management (TSM) business. The company is targeting delivery of the remaining 1,700 gaming machines under a 3,000-unit sales target for 2026, according to comments by RGB’s chief operating officer for leisure, Chuah Eng Meng, cited by The Edge Malaysia newspaper. Mr Chuah said the group also expected growth in its sales, services and marketing business from additional business with integrated resorts in the Philippines. RGB additionally sees an opportunity from replacement demand in Macau linked to the city’s updated technical standards for electronic gaming machines. “We submitted our tender last month for one of the major casinos in Macau. The tender is expected to conclude by the third quarter and deliver by the fourth quarter,” Mr Chuah was quoted as saying. The report said the relevant replacement programme was expected to take place progressively over the next one to two years as the unnamed casino operator upgraded its gaming floors. Regarding the TSM segment, Mr Chuah said the business was expected to have “bottomed out”, with RGB seeking to improve performance by relocating machines from underperforming venues to better-performing ones, particularly in the Philippines. He said the company had secured the necessary regulatory approval for such relocation. RGB last week reported a 26.3-percent year-on-year decline in second-quarter profit attributable to shareholders, to MYR10.3 million (US$2.6 million), despite revenue increasing by 15.5 percent, to MYR109.6 million. The company said at the time that second-quarter revenue from its sales and marketing division rose 20.1 percent year-on-year, to MYR93.1 million. Segmental profit before tax nonetheless fell 21.1 percent. According to media outlet, RGB executives attributed the weaker margins partly to discounts and additional payment terms offered to Philippine customers placing large orders. Executive director Chuah Hui Jing described the arrangements as a “one-off” for this year. The company is also looking to expand its digital gaming business in the Philippines, with management expecting the segment to start contributing to group earnings within one to two years. RGB’s digital business encompasses game content, game aggregation, and white-label or managed services. The executive said RGB had submitted a bid to provide a turnkey white-label solution to one Philippine casino resort and was in “very extensive talks” with the prospective customer. The company was in initial discussions with two other integrated resorts. Under such an arrangement, RGB and its operating partner would provide and manage an online gaming platform on behalf of the casino-resort operator, with RGB receiving a share of revenue. Ms Chuah said the white-label business could generate a revenue share of between 20 percent and 30 percent, while requiring relatively limited capital expenditure from RGB.