GGRAsia – Asia Pioneer sharply cuts 1H loss as revenue jumps 160pct

Asia Pioneer sharply cuts 1H loss as revenue jumps 160pct

Aug 23, 2024 Newsdesk Latest News, Macau, Rest of Asia, Top of the deck

Hong Kong-listed Asia Pioneer Entertainment Holdings Ltd sharply cut its first-half loss to HKD638,929 (US$81,962) compared to just over HKD7.1 million in the first six months of 2023.

The business, via its Asia Pioneer Entertainment arm, is authorised to distribute electronic gaming equipment in Macau, and also provides such technology to land-based casinos in other parts of the Asia-Pacific region.

The group’s revenue increased by 159.6 percent year-on-year to just above HKD19.9 million.

Gross profit for the first six months rose to just above HKD9.4 million, from HKD300,517 a year earlier.

The company’s gross profit margin leapt to 47.3 percent for the latest reporting period, compared to 3.9 percent in first-half 2023.

The group’s operating expenses increased by 43.3 percent year-on-year in the first half this year, to just over HKD10.3 million, which it said was mainly due to increases in operating and staff costs.

No dividend was paid or proposed for the reported interim period.

The company said in a Thursday filing to the Hong Kong Stock Exchange: “The group’s goal for the second half of 2024 is to get back to full year profitability.”

It added: “We are optimistic that this target can be achieved as the macro trend for the Macau casino industry remains positive.”

The holding company said it was “actively marketing” electronic gaming equipment to casinos in the Philippines and Malaysia, adding it was “optimistic that this will lead to increased orders in the second half of 2024”.

First-half 2024 revenue from technical sales and distribution of electronic gaming equipment was just over HKD13.8 million, up 189.5 percent year-on-year.

Revenue in the consultancy and technical services business stood at just under HKD4.6 million, a rise of 301.2 percent from a year earlier.

But the group’s first-half 2024 product sales through its smart vending machine business – a line it developed during the Covid-19 pandemic period – fell 13.2 percent year-on-year, to HKD978,655.

The group said that its principal products for the electronic gaming equipment and supplemental products business came from its existing long-term suppliers, namely Spintec d.o.o. from Slovenia; Jumbo Technologies Co Ltd, based in Taiwan; and Konami Australia Pty Ltd, in Australia.