MelcoLot reports narrowed loss in 17Q1

Lottery service provider MelcoLot Ltd. recorded a narrowed loss of HK$2.2 million (US$282,600) for the three month period ended March 2017, compared to a loss of HK$5.2 million for the same quarter in 2016.

In a Hong Kong Stock Exchange filing, the company noted the narrowed loss was mainly due to to a decrease in employee benefits costs from HK$4.7 million for the three-month period ended 31 March 2016 to HK$2.0 million for the corresponding period in 2017.

Total revenue for the group amounted to HK$9.8 million in 17Q1, down 15 percent year-on-year from HK$11.5 million in 16Q1.

The majority of revenue was generated from the sales of lottery terminal and parts, amounting to HK$9.6 million, while revenue from provision of services and solutions for distribution of lottery products only netted HK$0.2 million in the quarter.

“The China lottery market had been full of challenges since March 2015 when the government took action to strictly prohibit all internet lottery ticket sales activities. While changing regulatory environment will unavoidably bring short-term uncertainties to the industry, we believe that proper regulatory reform will further improve the industry regulatory framework, thus leading to a healthier and sustainable market in the long run,” said the company in a statement.

The board did not recommend a payment of an interim dividend for the quarter.