Melco Lot posts narrowed loss in 16H1, says challenges remain

Chinese lottery services provider MelcoLot Ltd. posted a narrowed loss of HK$12.4 million ($1.5 million) for the first half of 2016, compared to HK$19.3 million in the 15H1.

According to the company’s filing to the Hong Kong Stock Exchange, the group’s revenue amounted to HK$34.0 million, an increase of 41 percent year-on-year from HK$24.1 million.

Revenue was derived from sales of lottery terminals and parts, and provision of services and solutions for the distribution of lottery products.

The lottery operator, which is a subsidiary of Melco International Development Ltd said the narrowed loss was a result of declined benefits to employees and the decrease in other expenses as well as the increase in interest income.

While lottery sales in China were up 3.5 percent to RMB 194.3 billion (US$29.3 billion) in the first half of 2016, the company did not seem to optimistic of the outlook of the market.

“We believe the China lottery market will continue to be challenging as a result of the constantly changing regulatory environment. We remain prudent but optimistic about the development of the China lottery market,” the company said.

The company did not recommend an interim dividend for the six month period ended June 30, 2016.