AGTech posts revenue of US$37.6m for H1

AGTech Holdings has posted a 120.9 per cent year-on-year rise in revenue for the first half of 2023.

Hong Kong.- The lottery service provider AGTech has shared its financial results for the first six months of the year. Revenue amounted to HK$294.4m (US$37.6m), up 120.9 per cent over the corresponding period in 2022.

Revenue from its lottery and related business (including lottery hardware sales, provision of lottery distribution and ancillary services in mainland China) was HK$92.3m (US$11.8m). Its provision of electronic payment and related services in Macau generated HK$202.1m.

The increase in revenue from the electronic payment and related businesses was mainly due to the consolidation of revenue from the acquired wholly-owned subsidiary of Macau Pass Holdings, the company which owns 99 per cent of Macau Pass, for HK778m (US$100m), in June 2022.

It also attributed an increase in revenue to the growth in tourist arrivals in Macau in the first half and no further extension on the exemption on transaction service fees charged to small and medium enterprises after the end of February 2023. Profit for the first half was approximately HK$22.9m while operating losses declined to HK$12.4m.

According to the company’s statement, the decrease in operating loss was due to a combination of factors: the increase in revenue (partially offset by the related costs and expenses); the increase in other income by approximately HK$4.8m (partially offset by an increase in employee benefits expenses to HK$77.3m) and the increase in the depreciation and amortisation expenses to HK$34.9m.

As for the following months, the company stated: “The group will continue to extend its hardware product offering to non-lottery hardware for the retail sector, with a view to broadening the product spectrum of its hardware business.

“At the same time, the group will also integrate and optimize its technical capabilities in the POS (point of sales) payment terminals market and provide better services for merchants in Macau.

“Looking forward, AGTech will continue to pursue overseas opportunities and globalize its business through offering its proprietary systems and platforms, as well as operational and technical expertise, in addition to seeking a strategic partnership with local partners in Asia, where appropriate.”