APE creates Metaverse-focused business to diversify income streams

APE, Asia Pioneer Entertainment, metaverse

Asia Pioneer Entertainment (APE) said it has created a new unit to focus on opportunities in the Metaverse to diversify its revenue sources.

APE Digital Creations has engaged a team with in-depth expertise in the development of Metaverse-related businesses.

Utilizing digital technologies, software, and infrastructure, the Metaverse can reconstruct a digital world replica of a physical world with digital identities as an interface for users to enter the digital world, the company says.

Resorts and other travel destinations can become digital spaces in the Metaverse where travelers/users can immerse and engage. Moreover, blockchain technologies and non-fungible tokens (NFT) that allow digital items or properties to be owned, sold and transferred within the digital world may further engage the traveler/user and advance the commercial application of the Metaverse.

“The company believes the Metaverse and its emerging technologies can provide a platform of engagement for the travel and hospitality sectors and for our customers in Macau and Asia,” it said, adding that it believes there are good prospects in the field. 

APE, whose main business of distributing and servicing electronic gaming equipment has been hard hit by the pandemic, has been exploring other business opportunities. 

Last year, the company announced it ​​has diversified into smart vending machine operations in Macau.

Its underlying rations is that it has experience in maintaining and repairing consumer-related machines and in integrating software platforms and machines. It says the smart vending machine market is fast-growing and benefiting from advances in cashless technologies.

Revenue for 2021 was HK$7.6 million for the year, down from HK$40.5 million in 2020. The group reported a loss of approximately HK$23.1 million compared to a loss of approximately HK$32.0 million in FY 2020, thanks to cost-cutting measures. APE reduced expenses by about 10 percent, with all senior management having agreed to a 20 percent cut in salaries in April 2020.