GGRAsia – Gaming tech specialist Asia Pioneer 1H loss up 4pct y-o-y

Gaming tech specialist Asia Pioneer 1H loss up 4pct y-o-y

Aug 15, 2022 Newsdesk Industry Talk, Latest News

The interim loss attributable to the owners at Asia Pioneer Entertainment Ltd widened by 3.9 percent year-on-year, to HKD9.76 million (US$1.2 million), the firm said in a Friday filing to the Hong Kong Stock Exchange.

The group had reported a first-quarter net loss of HKD 4.27 million.

The company said in commentary on its latest numbers it was “actively looking at steps to restructure” its electronic gaming equipment business to “prepare for the future”.

Asia Pioneer is authorised to distribute electronic gaming equipment to Macau’s six casino licensees, and also provides such technology to land-based casinos in other parts of the Asia-Pacific region. The group additionally gives technical support and consultancy on gaming equipment.

During the six months to June 30, Asia Pioneer’s group revenue from contracts with customers went down 10.6 percent year-on-year, to just under HKD2.69 million. Cost of sales in the reporting period rose 46.1 percent, to just under HKD3.57 million.

Revenue from gaming equipment distribution was HKD612,056, and was outstripped by that from consultancy and technical support, at HKD1.35 million. Repair services produced HKD251,083, giving total segmental revenue of just over HKD2.22 million.

That was down 26.2 percent year-on-year on the just under HKD3.01-million revenue from those activities in the first six months of 2021.

Since the second half of 2021, the group has diversified into supplying ‘smart vending machines’. That produced HKD471,341 in revenue in the six months to June 30.

During the first half, Asia Pioneer set up in Hong Kong a new wholly-owned subsidiary called APE Digital Creations Ltd to pursue business linked to a 3-D version of the Internet known as the ‘metaverse’, as well as “related businesses”. No revenue was shown as booked from that business in the first half.

The company said in commentary with the first half results: “The ongoing uncertainty of Covid-19 continues to affect the operations and plans of our customers.”

It added: “This has caused a prolong impact on our businesses and operations, particularly our electronic gaming equipment business.”

Asia Pioneer stated: “As a result, the group needs to diversify its business lines, and also look at ways to minimise costs and expenses.”