MelcoLot posts narrowed net loss

MelcoLot says it saw a 36 percent improvement in profit/loss for the first nine months of 2016, posting a narrowed net loss of HK$16.7 million ($2.1 million).

In a filing to the Hong Kong Stock Exchange, the lottery provider generated revenues of HK$53 million in the nine month period ending September 30, 2016, up 56 percent year-on-year compared to HK$34 million in the same period last year.

Growth in the company’s sales of lottery terminals and parts, was the main factor of the increased revenues, up 83 percent year-on-year to HK$52.3 million.

However, the company’s revenue from the provision of services and solutions for the distribution of lottery products dropped down 87 percent year-on-year to HK$683,000 compared to HK$5.4 million the year before.

“While new channels and games are undoubtedly attractive areas for development, we believe the China lottery market will remain challenging due to the evolving regulatory environment. We are closely monitoring the development of this growing market in the PRC,” said MelcoLot.

“At the same time, we are continuing to pursue the opportunities to develop international projects and explore [Chinese] business opportunities which can leverage our corporate expertise in the gaming and entertainment industry,” it added.