AGTech posts revenue drop

    Hong Kong listed China lottery supplier AGTech posted second quarter revenues of HK$69.4 million, a drop from the HK$97.2 million in the same period in Y12Q2, and gross profits of HK$33.0 million. The company saw an upward trend on Virtual Sports Betting sales, expected to continue in the coming quarter through the commencement of the roll-out of “Lucky Racing” to more provinces in Mainland China  this year and the further rollout of its new virtual sports lottery game “e-Ball” in Jiangsu, following its successful launch during the first half of this year. AGTech’s wholly-owned subsidiary GOT was chosen as a supplier of lottery terminals by most of the provinces which concluded tenders during 2014, enjoying market share of annual terminals supplied of approximately 48 percent.

    Most of the revenue was derived from gaming technologies (game software, systems, hardware and terminals) business and provision of sports lottery management and marketing consultancy services in Mainland China, the company told the stock exchange in a filing. 

    The decrease in revenue was mainly due to lower like-for-like sales in the Hardware division (GOT) in line with the market during the reporting period as well as the expected expiry of certain contracts in the Lottery Management division. 

    Loss attributable to owners of the Company for the six month period amounted to approximately HK$88.9 million, up from HK$52.7 million year on year, primarily due to the increase in depreciation expenses due to the establishment of a data centre for rolling out the e-Ball Lottery game;  the relocation of the company’s Beijing office in China; and the rise in share-based payments totaling approximately HK$64.1 million. AGTech’s board did not recommend the payment of an interim dividend for the six-month Period.