AGTech reports $14m loss for 2Q22, China lottery sales up

AGTech-Lottery

AGTech Holdings Ltd reported a consolidated net loss pegged at HK$110 million ($14 million) for the second quarter of year 2022 which ended on June 30.

In the same quarter during last year AGTech reported net profit of HK$ 2.4 million ($0.3 million) 

Though the consolidated net revenues of the company grained reasonable traction in on a year-on-year basis at HK$98 million ($12.5 million) up 71%, from HK$ 57 million ($7.3 million), five times high operating loss at HK$ 56 million ($7 million) from HK$ 11 million ($1.4 million) failed in cushioning the bottom-line of the company for the quarter ended on June 30.

“Increase in revenue from lottery hardware and provision of lottery distribution and ancillary services were mainly due to the Group’s continuous effort in developing its lottery hardware business and expanding its network of collaboration with retail sales outlets for lottery distribution,” the company statement read.

Dent in bottom-line equally widened the loss per shares on year-on-year basis as high as twelve times from HK$0.05 per share to HK$ 0.65 per share.

Spread

In terms of segment-wise revenues contribution towards the consolidated net revenue for the six months period which ended on on June 30, Lottery Hardware segment sales contributed 40 percent at HK$ 54 million ($7 million), whereas Lottery Distribution segment contributed 18 percent at HK$ 24 million ($3 million). 

The consolidated six months revenue of the company for the quarter ended on June 30 grew 71 percent on year-on-year basis at HK$ 133 million ($17 million) from HK$ 78 million ($10 million)

Attributing the six months revenue flow, the company statement read that, “For the Six-Month Period, revenue contributions were mainly derived from lottery hardware sales, provision of lottery distribution and ancillary services in Mainland China and provision of electronic payment services in Macau.”

Breakdown

The Macau component contributed 38 percent on year-on-year basis to the top-line of the company for the six months period at HK$ 51 million ($32 million) whereas the Mainland China component contributed 62 percent pegged at HK$ 82 million ($62 million).

Whereas the Electronic payments systems contributed 16 percent at HK$ 22 million ($3 million), E-Wallet segment contributed 6% at HK$ 8 million ($1 million) and other payment platforms segment contributed 15 percent at HK$ 20 million ($2.5 million).

The Games, Marketing and Technology segment contributed 1 percent at HK$ 1.5 million ($0.2 million), whereas Non-Lottery Hardware sales module contributed 2 percent at HK$ 2.3 million ($0.3 million) and income from Lease of Hardware contributed 1.5 percent at HK$ 2.13 million ($0.3 million)

AGTech is an Alibaba and Ant Group promoted enterprise, an integrated technology and services company engaged in electronic payment services, lottery, mobile games and entertainment and marketing technical services and non-lottery hardware supply markets with a focus on Mainland China and Macau.