Asia Pioneer Entertainment (APE) has managed to significantly lower its loss in the first half of the year, while seeing it revenue rise by more than 160 percent yearly, with the goal to return to full year profitability in 2024.
Net loss during the six months amounted to just HK$638,929 ($81,940), compared to a loss of HK$7.1 million ($914,550) in 1H23. The group notes that this is largely due to the revenue increase to nearly HK$19.92 million ($2.55 million).
The majority of this was contributed by the group’s Technical Sales and Distribution of EGE (electronic gaming equipment), with revenue of HK$13.81 million ($1.77 million), a near 190 percent yearly increase. The group’s gross profit margin from the segment improved to 46.6 percent, up from 5.3 percent in 1H23 due to ‘higher overall selling revenue and the cost control’.
The principal manufacturers it highlighted are Spintec, Jumbo Technology and Konami.
New products from all three of these manufacturers are expected to gain authorization within the second half of 2024 and will be marketed to Macau casino customers in 1H24 and 2025.
In addition, the group reiterated its recent exclusive distribution agreement with IDX Systems, manufacturer of electronic trend boards ‘primarily used by baccarat tables to facilitate betting’. The group notes that it ‘will work diligently to pitch this IDX products’ to Macau casinos in 1H24 and 2025.
Meanwhile, the group’s Consultancy and Technical Services segment saw 301 percent growth in revenue, to HK$4.59 million ($588,560) in 1H24, with its gross profit margin rising to nearly 62 percent, compared to a loss of 7.3 percent in 1H23, as it upgraded its support services.
Looking ahead at the group’s goal to return to full year profitability, APE notes that it is ‘optimistic that this target can be achieved as the macro trend for the Macau casino industry remain positive’.
The group furthers that it is ‘actively marketing its EGEs to casinos in the Philippines and Malaysia and is optimistic that this will lead to increased orders in the second half of 2024’.
It further plans to expand its product portfolio ‘to include supplemental products that are used by casinos in their gaming-related or marketing-related operations’.
The company decided not to pay out an interim dividend for 1H24.
