MelcoLot warns H1 loss to widen

    MelcoLot, a lottery products distributor and provider in China, says its H1 loss is likely to more than double from the year-ago period due to foreign exchange losses and sluggish demand in mainland China.
    In a filing with the Hong Kong Stock Exchange, the group said its loss is likely to be approximately HK$14.1 million ($1.8 million). In the year ago half the company lost $6.7 million.
    It said it had a foreign exchange-related loss of about $7 million, compared with a gain a year ago of $3.8 million due to the depreciation of China’s renminbi against the Hong Kong dollar.
    It also said there has been a drop of about 28 percent in the sale of lottery terminals and hardware. Lastly, Melco said there had been a recognition of share-based payment expenses of approximately HK$3.2 million compared with nil in the past.
    The company warned the results are preliminary and may be subject to change.