RGB International Bhd Projects Second-Half Earnings Recovery on Machine Deliveries and Macau Replacement Demand
TL;DR — RGB International Bhd forecasts stronger 2H 2026 earnings from remaining deliveries of 1,700 machines toward a 3,000-unit target, TSM recovery via relocations in the Philippines, and Macau replacement demand tied to new EGM standards. Q2 profit fell 26.3% to MYR10.3M despite 15.5% revenue growth to MYR109.6M due to one-off Philippine discounts. Digital white-label deals could add 20-30% revenue share within 1-2 years.
SCCG Take — Regional replacement programs and digital platforms offer suppliers like RGB concrete growth levers, yet one-off margin concessions in new markets signal execution risks that operators and investors must price into supply agreements.
RGB International Bhd expects improved earnings in the second half of 2026. Stronger gaming-machine sales and a recovery in technical support and management operations form the base of the forecast. The Malaysia-listed supplier is targeting delivery of the remaining 1,700 machines toward its 3,000-unit sales goal for the year.
Chuah Eng Meng, chief operating officer for leisure, cited additional business with integrated resorts in the Philippines as a driver for the sales, services and marketing segment. Replacement demand in Macau linked to updated technical standards for electronic gaming machines represents a further opportunity.
Macau Tender and Replacement Timeline
RGB submitted a tender last month for one major casino in Macau. “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,” Chuah Eng Meng said, as reported by GGRAsia. The replacement programme is expected to take place progressively over the next one to two years.
The technical support and management segment has bottomed out. RGB plans to improve performance by relocating machines from underperforming venues to better-performing ones in the Philippines after securing regulatory approval.
Margin Pressures and Digital Expansion
The company reported a 26.3-percent year-on-year decline in second-quarter profit attributable to shareholders, to MYR10.3 million (US$2.6 million). Revenue rose 15.5 percent to MYR109.6 million. Sales and marketing revenue increased 20.1 percent to MYR93.1 million, yet segmental profit before tax fell 21.1 percent.
Executives attributed weaker margins to discounts and additional payment terms offered to Philippine customers, arrangements executive director Chuah Hui Jing called one-off for this year. RGB is expanding its digital gaming business in the Philippines, encompassing game content, aggregation and white-label services. Management expects the segment to contribute to group earnings within one to two years.
The supplier submitted a bid for a turnkey white-label solution to one Philippine casino resort and is in extensive talks with that prospect plus initial discussions with two other integrated resorts. Such arrangements could generate a revenue share of between 20 percent and 30 percent while requiring limited capital expenditure.
The competitive calculus for equipment suppliers now hinges on balancing near-term concessions against longer-term replacement cycles and digital revenue streams.
Reporting: GGRAsia
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Machine volume is the easy story; the real test is whether RGB can hold margin when chasing integrated-resort share in competitive markets.
We've seen this movie in Southeast Asia before: suppliers offer one-time concessions to break into resort channels, then struggle to walk pricing back. RGB's Macau tender and TSM repositioning in the Philippines are real levers, but Q2's 26% profit drop on 15% revenue growth tells me execution and margin discipline are the near-term risks, not just delivery timelines.
- 1,700-unit backlog toward 3,000 target; Macau tender decision Q3, delivery Q4
- Q2 profit down 26.3% to MYR10.3M despite revenue up 15.5% on Philippine discounts
- Digital white-label pivot could add 20–30% revenue share in 1–2 years
SCCG angle: We work both sides of these deals — manufacturers and resorts across Asia-Pacific. When a client needs to vet a supplier's pricing history or structure vendor terms that protect margin through deployment cycles, our network in Manila, Macau, and Malaysia delivers the ground truth and the leverage.
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