Macau Slot, a sports betting concessionaire operating in Macau, reported a 15 percent year-on-year increase in net profits in 2023, with an independent auditor flagging some financial disclosure issues.
The total revenue generated in 2023 by sports betting company, which manages bets on football and basketball, reached MOP587 million ($72.9 million), an increase of only MOP1 million ($124,331) from the previous year, but with net profits rising by 15 percent to MOP123.9 million ($15.4 million) according to the company.
“Despite facing fluctuations in the business environment and a slower economic recovery in neighboring regions, the local economy remained relatively stable due to the policies of the Macau SAR Government. This stability helped Macau Slot achieve impressive financial results,” President Ng Chi Sing says in the company’s financial report.
The concessionaire added it will harness this financial stability to diversify its sports betting products and enhancing its sports information services.
Founded in 1989, Macau Slot was the first Macau-based betting operator to run the instant lottery on the ferries to and from Macau and Hong Kong.
The operator’s most recent three-tear concession term is set to end to June 5th, 2024, with the company having lost its exclusive rights for sports betting in the SAR upon the most recent extension. However, no competing operators have so far emerged in the market.
Auditor’s yellow card
The company’s financial statements for 2023 received a qualified opinion from the external auditor, with the audit – conducted by Keng Ou Certified Public Accountants in accordance with Macau Auditing Standards – identifying two significant issues of non-disclosure of financial information and determination of the incremental borrowing rate.
The auditor commented that Macau Slot did not disclose the financial information of its associated companies as required by international accounting and financial standards for investments in associates and joint ventures or for disclosure of interests in other entities.
‘In measuring lease liabilities under International Financial Reporting Standard 16 the company referenced only the base bank rate without providing supporting methods and data,’ auditor Leong Ngan Peng noted.
‘Due to these shortcomings, the auditor issued a qualified opinion, stating that there was insufficient information to assess the full impact of these issues on the financial statements.’
