GGRAsia – MelcoLot losses widen in 3Q on share option grant

MelcoLot losses widen in 3Q on share option grant

Nov 07, 2014 Newsdesk Industry Talk, Latest News

Lottery supplier MelcoLot Ltd saw its net losses jump to HKD37.4 million (US$4.8 million) in the three months ended September 30 compared to HKD9.9 million in the prior-year period.

The firm, listed on the Growth Enterprise Market of the Hong Kong Stock Exchange, recorded a 5 percent rise in quarterly revenue judged year-on-year, to HKD11.8 million, it said in a filing on Thursday. Employee benefits costs rose by almost 370 percent, to HKD38.7 million, mainly due to a share option grant exercise in August benefiting Macau casino investor Lawrence Ho Yau Lung (pictured) and seven directors.

MelcoLot supplies lottery terminals and related products to the two state-run lottery operators in mainland China. Melco International Development Ltd, headed by Mr Ho, controls the company. Greece-based lottery supplier Intralot SA is also a substantial shareholder in MelcoLot.

For the nine-month period ended September 30, MelcoLot’s total revenue was HKD34.4 million, representing a year-on-year drop of 20 percent due to a decrease in sales of lottery terminals and hardware. “The group adopted a low pricing strategy in order to maintain market share in the face of slow demand,” it stated.

In August, MelcoLot confirmed it had submitted a bid to Spanish authorities to operate a casino in Barcelona.