AGTech swings to profit on non-cash and non-operating items

China lottery supplier AGTech Holdings swung to a profit of approximately HK$157.3 million  (US$20 million) for the six months ended June 30, 2018.

AGTech said the swing to profit was mainly attributable to several non-cash and non-operating items related to convertible bonds and contingent consideration payables under the Score Value Transaction.

Total revenue for the group increased by 14 percent, reaching HK$61.7 million, due mainly to increases in revenue from the group’s lottery business.

AGTech said its lottery hardware business saw a 43.5 rise in revenue, while lottery games and systems increased 40.8 percent and  the provision of distribution and ancillary services achieved 190.1 percent climb in revenue compared to the prior-year period.

The board has not recommended the payment of an interim dividend.

Looking to the future, AGTech says it believes it is well positioned to participate in online and mobile lotteries in China once the ban on online lottery distribution is lifted.

In the meantime, AGTech will be seeking expansion opportunities in overseas markets through acquisitions.

“To this end, the Group has been in the process of identifying suitable acquisition targets and has been discussing with potential targets on such potential acquisitions, including those engaged in the businesses of lottery systems and technology, lottery games and technology, online lottery games and systems and lottery operations,” it said.

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