AGTech gaming, entertainment division drives Q3 revenue

Hong Kong-listed AGTech Holdings reported strong revenue growth for the third quarter of 2017, driven by its new Gaming and Entertainment division launched earlier this year.

In a filing to the Hong Kong Stock Exchange, AGTech said revenue grew 64 percent to HK$120.1 million (US$15.4 million) in the quarter.

AGTech said its Gaming and Entertainment division, which represented 36 percent of total revenues, generated revenue of HK$42.8 million, an increase of 180 percent over 17Q2.

“We are pleased that results from our higher margin and highly scalable businesses are beginning to deliver meaningful margin uplift and improved financial results during the quarter,” commented AGTech CEO John Sun.

“We are highly encouraged by the positive reception of our proprietary games and entertainment platform that integrates popular entertainment content with various resources on e-commerce and e-payment platforms, and believe its unique value proposition will continue to accelerate growth for the company going forward.”

Loss for the period however widened to HK$35.2 million in 17Q3, an increase over HK$20.1 million in 16Q3.

Looking to the future, AGTech says it hopes to continue growing its online presence though its Games and Entertainment division, and maximising the value of its business partnership with Alibaba Group and Ant Financial Group, in anticipation of the potential approval and authorisation of online distribution of lottery products in the future.

“Importantly, we continue to focus on innovations in product, channel, and business model across all of our divisions, working to leverage and integrate with both online and offline resources across Alibaba and Ant Financials, and those of suitable third party partners in China, India and beyond,” added Sun.