After more than three decades of restructuring and changes in ownership, it had completed its transformation form a debt ridden conglomerate to a cash generative pure gaming yield play.
It is looking to operate and manage the lottery business in other Asian countries in order to diversify its income stream.
Magnum plans to operate the lottery businesses for those governments and the private sector that have the licences and operating assets but need experts to run them.
Expecting a capital repayment of 48 sen in the next three months from July 2013 following the successful spin off of the non gaming assets into an IPO.
With its key restructuring plans concluded, the catalysts for Magnum shares are industry growth and dividend payouts.
Magnum is sitting on a huge cash pile of RM817.9 million as of March 31 2013, compared with RM631.5 million a year ago. The cash pile means the company, which has low gearing of 0.5 times, has more than enough money to expand and increase its dividends.
Magnum plans to pay dividends quarterly and has declared a dividend policy that pays at least 80 per cent of its net profit from gaming.
Magnum contributed more than 80 per cent to the group’s net profit and revenue.
Magnum is expecting 95 per cent of its net profit and revenue to come from gaming this year, and the rest from quoted investments and its holding in U-Mobile Sdn Bhd, which has a 3G licence.
Magnum, set up in 1975, announced in 2012 it planned to demerge its gaming and non-gaming assets, which includes general insurance, hotel and property.
The gaming business, including quoted investments and its holding in U-Mobile, is parked under MPHB (Magnum) while the non-gaming business is placed under MPHB Capital Bhd.
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