APE Macau confident in future despite further revenue drop in Q1
Asia Pioneer Entertainment Holdings Limited Macau (APE Macau) reported HK$1.3m (£138,026/€161,188/USD$168,197) in revenue in the first quarter of 2022, as the business continues to struggle with the effects of Covid-19.
Revenue was down by 34.5% year-on-year. The decrease was attributed to lower technical sales and electronic gaming equipment revenue.
Electronic gaming equipment accounted for HK$1.1m of the total revenue, down by 41.7% from Q1 2021. Technical sales and distribution of electronic gaming equipment made up HK$438,374 of this, down by 72.4%, while consulting and technical services revenue rose by 61.9% to HK$603,974.
Repair services accounted for HK$132,211, an increase of 150.4%. APE Macau's Smart VM business -which launched later in 2021 - made up the remaining HK$145,846.
Cost of sales and services amounted to HK$1.5m, HK$50,996 less than the year prior. This left the gross loss at HK$228,837, compared to a profit of HK$415,420 in Q1 of 2021.
Other losses amounted to HK$30,637, up by HK$8,900, while impairment losses under expected credit resulted in a gain of HK$5,910- up by 66.8%.
Operating expenses came to $3.9m, down by 15.4%. Staff costs made up HK$2.3m of this, a decrease of 7%. This was attributed to an increased amount of staff in the last year. Director remuneration amounted to HK$779,860, reflecting no change year-on-year.
Other costs - including auditor's remuneration, cost of inventories and depreciation of property and equipment - amounted to HK$905,785, down by 59.8%.
After finance costs of HK$24,935, the total loss for the quarter was HK$4.2m, down by 1.7%.
The company explained that the loss was due to the decrease in revenue, along with the continued impact of the Covid-19 pandemic on casinos in the Macau region.
Looking forward, APE Macau stated that it was “confident” that its electronic gaming business would recover within two to three years, adding that an expansion of mass-market gaming in Macau as the VIP segment declines could contribute to this,
Following its full year 2021 financial results APE Macau announced that it would be pursuing digital opportunities, after it reported a loss of HK$23m. The supplier released a profit warning ahead of the results.