Lottery and integrated technology and services company AGTech said it expects to record a profit of not less than HKD33 million ($4.2 million) in 1Q23, as compared with a loss of approximately HKD10.8 million ($1.38 million) in 1Q22.
According to a Tuesday filing, AGTech mentioned that a turnaround in its performance this year is due to a combination of factors, including the benefit from acquiring the entire equity interest in Macau Pass Holding Limited.
“There was an increase in revenue of by not less than HK$130 million ($16.56 million) for 1Q23 mainly as a result of the consolidation of the financial statements of Macau Pass Holding Limited and its subsidiaries”, wrote in the report.
AGTech also reported an increase in lottery hardware sales this year as compared to 1Q22. However, the gain was “offset by an increase in two other operating expenses of the company by not less than HKD72 million ($9.2 million) for 1Q23 and increase in purchases of and changes in inventories by not less than HKD7 million ($890.000) as compared to such expenses for 1Q22′.
Regarding Macau’s income, the firm stressed that the increase in incoming visitors to Macau during 1Q23 became an “important driver for the profitability of the company’s electronic payment business”, as Macau Pass is SAR’s sole mobile payment provider.
AGTech also said there was an increase in employee benefits expenses of not less than HKD 20 million ($2.55 million) for 1Q23, mainly due to the inclusion of the Macau Pass Group’s employee benefits expenses following the acquisition.