Lottery and integrated technology and services company AGTech Holdings Limited announced a substantial loss reduction for the six months ending September 30th, 2024.
In a recent dispatch, the Alibaba subsidiary said it expects its loss for the 2024 period mentioned to decline by over 65 percent, translating to a decrease of approximately HK$6.9 million ($896,104) compared to a loss of about HK$10.5 million ($1.3 million) recorded for the same period in 2023.
Several factors are contributing to this projected reduction in losses. The group anticipates a revenue decrease of HK$6 million ($778,432) to HK$8 million ($1 million), primarily due to a significant drop in revenue from its electronic payment business in Macau, which is estimated to decline by HK$22 million ($2.8 million) to HK$25 million ($3.2 million).
The group is mainly involved in gaming technologies and lottery management, with its lottery services covering over 80 percent of the provinces and municipalities across China. In Macau, the group also owns digital Ant Bank (Macao) and the electronic payment services platform Mpay.
This decline is linked to reduced tourist spending and the conclusion of the 2022 Electronic Consumption Benefits Plan in June 2023. However, this decrease is somewhat offset by an expected increase in lottery operations revenue, projected to rise by approximately HK$11 million ($1.4 million) to HK$13 million ($1.6 million).
Additionally, the consolidation of Ant Bank (Macao) Limited’s revenue is expected to contribute HK$5 million ($649,351) to HK$7 million ($909,092) from September 2024.
Operating expenses are forecasted to decrease by approximately HK$14 million ($1.8 million) to HK$17 million ($2.2 million), down from HK$146.4 million ($19 million) in the previous year, primarily due to lower transaction service fees in the electronic payment sector.
Furthermore, the Group anticipates a reduction in net other losses, projected to decrease by HK$12 million ($1.5 million) to HK$15 million ($1.9 million), mainly due to the stabilization of the Renminbi against the Hong Kong dollar, which has helped mitigate foreign exchange losses.
On the other hand, employee benefits expenses are expected to rise by HK$14 million ($1.8 million) to HK$16 million ($2 million). This increase is largely attributed to the inclusion of Ant Bank (Macao) Limited’s employee costs following its consolidation in September 2024, as well as ongoing recruitment efforts to support business expansion.
