Lottery and gaming technology supplier AGTech Holdings Limited is expecting to record a net loss of not less than HK$98 million ($12.5 million) for the financial year ended March 31st.
According to a Hong Kong Stock Exchange filing, this compares to a profit of HK$31 million ($3.95 million) for the 15-month period ended March 31st, 2024.
The group notes that the majority of the loss, totaling HK$70 million ($8.93 million), is derived from a fair value loss on convertible term loan facilities provided to a 45-percent-owned joint venture company in India – First Games Technology Private Limited. First Games provides an app for real money games, including rummy and fantasy sports.
The group furthers that it’s expecting a one-off loss on a receivable from an independent third-party totaling approximately HK$10 million ($1.28 million).
It also indicates that it suffered a decrease in revenue to HK$610 million ($77.8 million) for its 2024/2025 financial year. This is partially attributed to a shift in its financial year from 15 months to 12 months, with the group registering HK$767 million ($97.8 million) in revenue during the 15-month period ended March 31st, 2024.
A drop in revenue from its digital payment business of ‘not less than HK$30 million ($3.83 million)’ is expected for its 2024/2025 financial year ‘as a result of a decrease in tourists’ spending in Macau’, as well as the end of a consumer subsidy scheme for locals which ended in 2023.
