AGTech Holding said it expects its first-quarter loss to narrow by about 60 percent due to the addition of revenue from newly acquired Macau Pass and the development of its lottery business in China. 

In a filing with the Hong Kong Stock Exchange, the company said it has seen an increase in total revenue of not less than 60 percent due to the addition of Macau Pass. In 1Q21, the company recorded a loss of HI$38.7 million. 

AGTech the increase in revenue had been partially offset by a decline from its 45 percent-owned venture in India, Paytm First Games. The company had earned revenue from technical and operational support, as well as content, for its fantasy games, but the joint venture has now established its own research and development center. 

In addition to increasing revenue, AGTech said it had also taken steps to control costs, resulting in a cut of 50 percent in employee benefit expenses. It also booked an $8.5 million foreign exchange gain. 

The company said the figures are provisional and it has not yet finalized its results for the first three months. 

AGTech, which provides lottery services in Mainland China, announced the HK$778 million ($100 million)  purchase of Macau Pass Holdings in September to diversify its revenue streams.

Macau Pass provides services that enable retailers and other merchants to accept different payment methods from other payment service providers, such as the Alipay e-wallet, so customers can choose their preferred payment methods at checkout.

The firm received key regulatory approvals in March.