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Borrowings position kept increasing QoQ/YoY and high finance cost that ate into meagre QR profit for a gaming industry PLC. Soon, they will be working for the banks if borrowings position and interest rate/funding cost continues to increase ! From previous Cash rich company to high Nett borrowing company.
Previous dividends have been paid via increasing borrowings on QoQ & YoY basis. For prudent capital management, it is reckless to pay dividends unless they can pare down on their ever increasing existing debts.
168 will be a nice number :-| Some funds and investors might not have the patience to wait out for regular dividends though. Performance needs to be consistent to ensure regular payments of dividends that are higher than risk free assets (FDs) based on higher beta risks.
The government might even consider raising the annual casino gaming licence fee from RM120 million to RM150 million and gaming tax on casinos to 35% of gross gaming revenue (GGR). Malaysia’s tax/duty increases on gambling and casino gaming in Budget 2027 (only 2 months away) is always a meaningful possibility since Government need additional revenue.
