Chinese lottery services provider MelcoLot Ltd has narrowed its loss to HK$5 million (US$622,500) in 16Q1, compared to a loss of HK$8.8 million posted in the same period last year.
In its filing to the Hong Kong Stock Exchange, the lottery operator, which is a subsidiary of Melco International Development Ltd, said total revenues grew 0.2 percent year on year to HK$11.5 million.
The relatively flat year on year revenue performance was a result of a 92 percent drop in revenue from the provision of services and solutions for the distribution of lottery products, from HK$2.5 million last year, to HK$0.2 million, which was offset by a 25.6 percent jump in the operator’s sales of lottery terminals, to HK$11.3 million, compared with HK$9 million last year.
“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 capitalise on,” the company remarked.
For the year ended Dec. 31, 2015, MelcoLot reported a net loss of HK$35.9 million, representing a 45.1 decrease compared to a loss of HK$60.4 million in 2014.
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.