APE’s gross profit has decreased by approximately 63 per cent year-on-year.
Macau.- Gaming technology supplier Asia Pioneer Entertainment Holdings (APE) has issued a profit warning reporting that it expects a loss before tax of approximately HK$32m (US$4.1m) for 2020. That compares to a loss before tax of HK$1.7m for 2019.
The company has also registered a decrease in gross profit of approximately 63 per cent, from HK$28.6m in 2019 to HK$10.5m for 2020.
APE attributed the expected loss to the termination of two of its finance lease agreements in 2020, and the impact of Covid-19 pandemic.
As a result of the lockdown of land-based casinos, the company saw a weaker demand for technical sales and distribution of electronic gaming equipment.
Revenue from technical sales and distribution of electronic gaming equipment is expected to have fallen by 51 per cent while revenue from consulting and technical services is believed have declined by 42 per cent and repair services by 61 per cent.
During the first nine months of 2020, the company reported a HK$23.5m (US$3.03m) loss. At the time, APE’s board decided not to pay any dividends for the period.