Chinese lottery operator MelcoLot reports net loss of HK$35.9 million

Chinese lottery services provider MelcoLot Ltd reported a net loss of HK$35.9 million (US$4.5 million) for the year ended Dec. 31, 2015, representing a 45.1 decrease compared to a loss of HK$60.4 million in 2014.

The lottery operator reported increased revenue for the year at HK$57.2 million, up 26.3 percent compared to HK$45.3 million for the year before from its sales of lottery terminals and parts for the sports lottery, as well as provision of services and solutions for the distribution of lottery products in China.

Frank Tsui Che Yin, chairman and non-executive director of MelcoLot said that the group experienced a challenging year given the change in regulatory regime and a soft lottery market, but was able to make solid progress in order to stay ahead of the shifting trends in China.

“We believe the China lottery market will remain challenging due to the evolving regulatory environment but with our competitive strength, this will undoubtedly bring new opportunities for the Group to capitalize on,” said the chairman.

“In line with the leisure and entertainment corporate philosophy of our parent company, the Group continues pursuing investment opportunities outside of lottery and the PRC market. We are continuing to pursue the opportunity to develop a premium integrated resort next to Barcelona in Spain. The ongoing international and existing PRC business opportunities  leverage  on  our  corporate  expertise  in  the  gaming  and  entertainment industry and diversify our business with a view to achieve our goal in maximizing long term shareholders’ value.”

Last year, China’s lottery sales fell 3.8 percent year on year to RMB367.9 billion (US$55.9 billion), according to data from the Ministry of Finance in China. The slowdown in China’s economic growth was the main culprit of the decline, however, the temporary suspension of online sales that was imposed in Mar. 2015 was also to blame.