GGRAsia – APE expects narrower year-to-Sept loss, on lower revenue

APE expects narrower year-to-Sept loss, on lower revenue

Nov 01, 2021 Newsdesk Latest News, Macau, Top of the deck

Gaming supplier Asia Pioneer Entertainment Holdings Ltd (APE) has said it expects to record a loss of approximately HKD13.0 million (US$1.7 million) for the first nine months of this year. The loss for the same period in 2020 was HKD23.5 million, including a one-time impairment loss of finance lease receivables of approximately HKD22.8 million, according to a Friday filing.

The group’s interests include Asia Pioneer Entertainment Ltd, a Macau-based distribution, sales and servicing business for casino slot machines and electronic table games.

Hong Kong-listed APE said that it expected to record revenue of approximately HKD5.5 million in the period to September 30, down by 85.8 percent from the HKD39.1 million achieved in the prior-year period.

The company attributed the expected decline in revenue to the negative impact on business of the Covid-19 pandemic. “The Covid-19 epidemic continues ongoing for approximately 21 months now, which continues to affect adversely the operations of our customers, the land-based casinos,” said the gaming supplier.

The group said additionally it expected revenues from its main business units to decline in the reporting period from a year earlier.

Revenue from technical sales and distribution of electronic gaming equipment products was expected to be down by 89.4 percent; income from consulting and technical services and repair services was estimated to decline by 32.2 percent; and the group expected a decrease of 65.3 percent in revenue from the repairs services segment.

In August, APE reported a net loss of HKD9.40 million for the first half of 2021, on revenue that fell by 74.6 percent year-on-year, to just above HKD3.0 million.

The group launched earlier this year a vending machine business, as part of its diversification strategy.