APE revenue plummets in H1

APE revenue plummets in H1

The company says it will now focus its equipment business on Macau.

Macau.- Gaming technology supplier Asia Pioneer Entertainment Holdings (APE) has posted unaudited consolidated financial results showing a revenue drop of 46 per cent in the six months to June 30, compared to the same period in 2019.

Last year the company made approximately HK$21.9 million (US$2.8 million) and has now reported HK$11.8 million (US$1.5 million) for the first half of 2020.

The group said its subsidiary APE Macau, which operates the core businesses in Macau Special Administrative Region, accounted for all revenues.

APE’s gross profits dropped 59.8 per cent year on year, totalling HK$3.3 million (US$425,808) from January to June 2020, and gross profits margins from sales of products and services fell to 28.1 per cent, down from 37.7 per cent last year.

Losses before tax were HK$28.9 million, “mainly due to an impairment loss of HK$22.9 million (US$2.95 million) in finance lease receivables.”

APE’s board did not recommend paying any interim dividends for the period.

In the filing the company said its core business was highly dependent on the demand of casinos, particularly at the time of new casino openings and replacement of used electronic equipment.

For the future the group plans to focus on strategic objectives, consolidating its distribution of electronic gaming equipment in Macau SAR and Southeast Asia, as well as seeking new business.

It said: “The group decided to concentrate its focus on operations and businesses in Macau SAR and only selectively sell electronic gaming equipment to Southeast Asian countries.”

Recently, APE announced its intention of entering the sports events and sports venues business, for which it created another Macau subsidiary, APE Sports and Entertainment Limited. It now said: “The group believes that sports entertainment will excel as visitors will return to Macau SAR after the outbreak of COVID-19 has been controlled”.

Finally, as the group has made its first incursion into the consulting business, participating as project management to advise an operator in the opening of a new casino in Vietnam.

APE said it “hopes that this consulting project will lead to further business opportunities in Vietnam or other similar consulting projects.”

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