GGRAsia – MelcoLot expects loss of US$1.8 mln for 1H 2014

MelcoLot expects loss of US$1.8 mln for 1H 2014

Jul 31, 2014 Newsdesk Industry Talk, Latest News, Top of the deck

Hong Kong-listed lottery supplier MelcoLot Ltd expects to post a loss of HKD14.1 million (US$1.8 million) for the first half of the year.

The company said in a filing to the Hong Kong Stock Exchange the negative results were attributable to an exchange loss of around HKD7.0 million resulting from the depreciation of renminbi against the Hong Kong dollar. MelcoLot also reported a decrease in sales of lottery terminals and hardware of approximately 28 percent when compared with the same period a year before due to “sluggish demand” from mainland China, the company said.

It added that it is also recognising share-based payment expenses of approximately HKD3.2 million in the results for the six months to June 30, related to share options granted in the past.

MelcoLot is expected to announce the unaudited results for the first half on August 8. The company posted a loss of HKD12.3 million for the first quarter of 2014, 125 percent more than in the same period a year earlier.

The company is controlled by Hong Kong-listed Melco International Development Ltd, headed by Lawrence Ho Yau Lung. Melco International is one of the two controlling shareholders of casino operator Melco Crown Entertainment Ltd – the other is Australia’s Crown Resorts Ltd. Greek lottery supplier Intralot SA is also a substantial shareholder in MelcoLot.