AGTech reports decline in revenue in 17H1

Lottery service provider AGTech Holdings Ltd, saw a 29.4 percent decline in revenue for the first half of 2017, mainly due to the reduced sales of lottery hardware products.

Revenue was approximately HK$54.1 million in 17H1, compared to approximately HK$76.6 million in the prior year period.

“Despite the decrease in revenue mainly from reduced sales of lottery hardware... we are highly encouraged by the scalability and revenue growth potential of our games and entertainment division, through which we began providing many casual and social games to a broad set of audience across several mobile channels.” said John Sun, Chief Executive Officer of AGTech Holdings Limited.

Revenues from new initiatives launched in the games and entertainment business was HK$17.1 million, representing approximately 32 percent of total revenues in the first half of 2017.

The company recorded a loss of HK$437.1 million for the half year, attributed mainly to the loss of HK$371.6 million from the remeasurement of the fair value of Convertible Bonds, as well as an increase in staff and finance costs.

Looking ahead, AGTech says it will continue to focus on expanding its lottery product and distribution business “as evidenced, amongst other initiatives, by the official launch of the SF-Themed Instant Scratch Lottery, the first lottery product to ever be distributed via a logistics network in China.”

It also noted its recent joint venture agreement with Paytm, India’s leading mobile payment platform, as its first significant strategic international expansion in the company’s history.

“This joint venture will enable both companies to tap into the significant potential of the fast growing mobile entertainment market in India, and lays the foundation for further international expansion in the future,” said the company.

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