AGTech swings to loss in Jan-Sept period

Lottery service provider AGTech Holdings posted a loss of HK$73.1 million (US$9.3 million) for the first nine months of 2019, due mainly to several non-cash and non-operating items relating to the fair changes of convertible bonds and the contingent consideration payables related to its acquisition of Score Value in 2014. 

Revenue of the group fell slightly in the nine-month period, reaching HK$118.1 million, down 8.9 percent year-on-year. 

AGTech said that revenue contributions were mainly derived from lottery hardware, lottery games, and systems, provision of lottery distribution and ancillary services, games and entertainment business in the PRC.

Sales of lottery hardware decreased approximately HK$14.5 million, which is correlated to the replacement cycle of lottery hardware for lottery authorities. 

The decreases in revenue were partially offset by an increase of approximately HK$6.1 million in revenue from the lottery games and systems.

Operating expenses also fell in the nine-month period, due to the decrease in marketing and various operating expenses. 

Looking ahead, AGTech said it will continue to build on its position within the Chinese lottery industry. The company is also working on improving the digitalization of sporting content. 

“We believe having a robust sports-oriented solution will help the Group to capture opportunities and gain an edge in the fast-evolving sports-entertainment sector, as well as popular international sporting events such as the Euro Cup going forward.”

In India, the company will continue to invest in the fast-growing mobile games and entertainment markets, whilst it will continue to look for strong suitable partners in other markets for collaboration.