GGRAsia – DJI slims loss, confirms China lottery online sales ban

DJI slims loss, confirms China lottery online sales ban

Jun 16, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck

DJI Holdings Plc, a licensed promoter and distributor in mainland China of sports and welfare lottery products, significantly narrowed its basic loss per share in 2014 as its consolidated gross sales leapt more than 2,700 percent.

DJI provides Chinese lottery products to third party retailers in China, and to Chinese consumers, via online and mobile communications technology.

DJI’s 2014 numbers were the first full year of results since a July 2014 initial public offering for the business, which is listed on the London Stock Exchange’s Alternative Investment Market.

The company on Tuesday reported a basic loss per share of GBP0.034 (US$0.053) in the 12 months to December 31, compared to a basic loss of GBP0.064 per share in the year-prior period. Its operating loss closed to GBP2.4 million, from GBP7.2 million a year earlier. The company’s before-tax loss in 2014 was GBP3.0 million.

The business produced consolidated gross sales of GBP642.4 million, compared to just GBP22.2 million a year earlier. Revenue grew by more than 12 times, to GBP13.4 million, from GBP1.1 million in the year-prior period.

DJI Holdings said highlights of the trading year included a joint venture agreement with Xinhuatong Software Development (Beijing) Co Ltd, which gave it access to a “large online and mobile customer base”.

Other milestones included what DJI Holdings said was “successful integration” of two lottery ticket fulfilment businesses acquired in the fourth quarter 2013 and “subsequent acquisition of specialty online sports lottery consumer business in the first quarter of 2014”. DJI Holdings had also further developed its direct-to-consumer web and mobile lottery ticket sales business during the 12 months to December 31, it stated.

The firm noted in its filing however, referring to market wide action by the Chinese authorities influencing business in 2015: “Temporary suspension of online sales continues, while regulatory review progresses in China.”

A series of Chinese government announcements starting in late February and ending in early April progressively limited and finally suspended until further notice all online sales of government lottery tickets pending a review of the regulatory framework for such sales.