GGRAsia – Asia Pioneer posts US$559k 1Q loss, up 6pct on-year

Asia Pioneer posts US$559k 1Q loss, up 6pct on-year

May 13, 2021 Newsdesk Latest News, Macau, Top of the deck

Hong Kong-listed Asia Pioneer Entertainment Holdings Ltd reported a first-quarter net loss of HKD4.34 million (US$558,989), up 6.2 percent from the prior-year period. That was on revenue that fell by 15.3 percent year-on-year, to HKD2.02 million, the firm said in a Wednesday filing.

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

The wider quarterly loss “was mainly due to a continued slowdown of new orders” as a result of the impact of Covid-19 on the operations of Macau-based “casino operators”, stated the parent company.

The decline in revenue was “mainly attributable to a decrease of income derived from consulting and technical services by approximately 57.6 percent, [and] repair services by approximately 89.3 percent,” it added.

Revenue from technical sales and distribution of electronic gaming machines stood at nearly HKD1.59 million, up 57.9 percent from a year earlier. It accounted for about 79.9 percent of the group’s aggregate revenue during the reporting period.

Consulting and technical services recorded revenue of HKD372,995 in first-quarter 2021, compared to HKD879,825 a year earlier. Revenue from repair services was just HKD52,779, versus HKD493,449 in the first three months of 2020.

“The group’s performance for the first quarter of 2021 continues to be adversely affected by the outbreak of Covid-19,” said the listed entity.

In the three months to March 31, the company said it made “a number of purchases of vending machines for its smart vending operations.” The firm announced in March that it was starting a “smart vending” business, as a way to diversity its business.

In a separate release on Wednesday, the company said it had launched its first smart vending machine in the Macau market, under the “Snap Buy” brand. The first machine was launched in collaboration with Choi Heong Yuen Bakery, Macau, providing a number of food products.

The release quoted Herman Ng Man Ho, the group’s chief executive and executive director, as saying that the smart vending machine business “has a great potential for development”.

“In the future, more smart vending machines will be placed in various locations and selling different kinds of products in Macau,” he added.