MelcoLot posts 9 month HK$26 million loss

Lottery operator MelcoLot Ltd, a subsidiary of Melco International Development Ltd and chaired by Lawrence Ho, accrued losses of HK$26 million ($3.35 million) for the nine-month period ended 30 September 2015. The group achieved total revenue of HK$34.0 million ($4.38 million) compared with HK$34.4 million for the same period in 2014, representing a decrease of 9.5 percent.

Revenues generated from the sales of lottery terminals and parts for the Sports Lottery amounted to HK$28.6 million (3.69 million), as opposed to HK$31.6 million for the same period in 2014. Revenues derived from the provision of services and solutions for the distribution of lottery products for the nine-months to 30 September 2015 amounted to HK$5.4 million ($697,000), – a 91 percent increase compared with the same period in 2014.

“We believe the Chinese lottery market will remain challenging due to continued changing of the regulatory framework by Chinese authorities, but these changes will undoubtedly bring new opportunities for the Group to use our competitive strength to capitalize on,” said the company.

MelcoLot is a distributor of high quality, versatile lottery terminals and parts for the China Sports Lottery Administration Centre, which is the exclusive sports lottery operator in the PRC. The distribution business contributed approximately 84 percent of the Group’s revenue for the nine-month period ended 30 September 2015.

The Group has also been pursuing investment opportunities outside of lottery and the PRC market. It is continuing discussions on the establishment of a new boutique casino in Tbilisi, Georgia, and in the planning process in relation to the development of a premium integrated resort project in Spain, adjacent to Barcelona.

 The directors did not recommend the payment of an interim dividend.