GGRAsia – Asia Pioneer revenue down nearly 28pct in year to Sept 30

Asia Pioneer revenue down nearly 28pct in year to Sept 30

Nov 09, 2022 Newsdesk Latest News, Macau, Top of the deck

Gaming tech specialist Asia Pioneer Entertainment Holdings Ltd (APE) reported revenue of HKD4.0 million (US$512,065) for the first nine months of 2022, down 27.6 percent from the prior-year period. The decline in revenue was “mainly due to a decrease of income derived from technical sales and distribution of electronic gaming equipment, and repair services,” said the firm in a Wednesday filing.

Hong Kong-listed APE’s interests include Asia Pioneer Entertainment Ltd, a Macau-based distribution, sales and servicing business for casino slot machines and electronic table games. The group also provides such technology to land-based casinos in other parts of the Asia-Pacific region, including technical support and consultancy on gaming equipment.

APE’s loss attributable to its owners widened by 2.5 percent year-on-year, to HKD13.3 million, the firm stated.

In the nine months to September 30, revenue from technical sales and distribution of gaming equipment was HKD998,305, down 74.0 percent from a year earlier. Such revenue was outstripped by that from consultancy and technical support, at HKD2.0 million, up 49.5 percent year-on-year. Repair services produced HKD317,458 in revenue, down 8.8 percent from a year ago.

Since the second half of 2021, the group has diversified into supplying ‘smart vending machines’. That segment produced HKD678,462 in revenue in the period.

The company said in commentary accompanying its latest results that it remained “concerned about the impact” of COVID-19 on the operations of land-based casino operators in Macau and Southeast Asia.

“This has caused a prolong impact on our businesses and operations, particularly our electronic gaming equipment business,” stated APE. “As a result, the group needs to diversify its business lines,” it said, adding that it was “doing internal restructuring to minimise costs and expenses” related to its operations.

As at September 30, APE had net current assets of about HKD16.3 million, compared with approximately HKD30.6 million as at December 31, 2021. The group had no bank borrowings.

Earlier this year, APE set up in Hong Kong a new wholly-owned subsidiary called APE Digital Creations Ltd to pursue business linked to the ‘metaverse’, as well as “related businesses”.

The parent company said it hoped the new unit would “allow the group to diversify into online and digital business opportunities.” No revenue was shown as booked from that subsidiary in the reporting period.