Asia Pioneer Entertainment Holdings has reported a 46 percent fall in its H1 revenues, hit by the impact of Covid-19 in both direct and indirect ways. The revenue total for the quarter was HK$11.8 million (US$1.5 million), producing net losses of HK$29 million.
A company statement explained, “The group’s business and results of operation are highly dependent on the demand of casinos, particularly at the time of new casino openings and replacement of used electronic gaming equipment. This demand has been negatively impacted by the Covid-19 crisis which has affected the operations of the group’s major customers, land-based casinos. A significant portion of the group’s revenue was generated by technical sales and distribution of electronic gaming equipment.”
In light of its over-dependence on electronic gaming equipment, APE is aiming to diversify into other fields; namely, consulting and project management in Vietnam and sponsorship and promotion of sports entertainment events.
This Dossier results from the “Life After POGOs” editorial project by Asia Gaming Brief which culminated with a pop-up digital forum on 9th December to discuss potentials ramifications in the industry.
Galaxy Entertainment Group told Macau News Agency that recent wage dispute involving workers employed at its Cotai expansion projects, originated from fee disputes between the workers and mainland employment agencies.
MGM Resorts has thrown its cards into the online gaming ring, with an attempt to buy U.K.-listed Entertain for GBP11.3 billion ($15.4 billion), which may reshape the group and reduce its focus on Asia in the longer term.
MGM Resorts has announced that Jonathan Halkyard will become Chief Financial Officer for the global gaming, hospitality, and entertainment organization. Halkyard is a senior corporate executive who spent 13 years in leadership roles at Caesars Entertainment and was more recently the President and Chief Executive Officer of Extended Stay America, Inc. and ESH Hospitality.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing
what 2020 may have had in store.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.