KUALA LUMPUR: Magnum Bhd’s net profit for the first quarter ended March 31, 2019 (1QFY19) rose 9.23% to RM60.01 million, from RM54.94 million a year ago, on better performance of its gaming division.

Its quarterly revenue climbed 6.16% to RM756.25 million from RM712.35 million. Earnings per share (EPS) grew to 4.22 sen from 3.86 sen, according to its filing with Bursa Malaysia. The group declared a first interim single-tier dividend of four sen per share, payable on June 28.

The group attributed its higher revenue and profit to its gaming division, where profit before tax grew to RM95.9 million from RM83.7 million, as it recorded higher sales of RM756.2 million, up 6.2% or RM43.9 million.

The sales increase, despite four lesser draws, was mainly due to higher sales from the 4D Jackpot game, as well as sales from a prolonged jackpot run and sales generated from its Magnum Life product, launched in April 2018.

This was slightly offset by its investment holdings and other division, with a higher loss before tax of RM8.08 million versus RM3.8 million previously, following an unfavourable variance of RM4.3 million, mainly due to higher fair value losses on investments during the quarter.

The group said while special draws have been reduced in 2019, it is optimistic that growth in per draw revenue will offset the downward pressure caused by less special draws.

“Together with the authorities’ sustained enforcement on illegal operators and our ongoing rebranding and reimaging exercise, the board expects the financial performance for financial year 2019 at an operational level shall at least match that of 2018,” said the group.

The counter closed 3.35% or eight sen lower at RM2.31, with 1.38 million shares traded and a market capitalisation of RM3.44 billion.