Macau’s Asia Pioneer Entertainment has warned that it expects to report an 81.1% year-on-year decline in revenue for the 12 months to 31 December 2021, down from HK$40.5 million (US$5.2 million) in 2020 to around HK$7.6 million (US$971,000).
It is the second successive year of big declines for the electronic gaming product distributor, with APE having previously suffered a 51% fall in revenues in 2020.
The company said via a profit warning that it had recorded decreases in revenue for its technical sales and distribution segment, its consultancy and technical services segment and its repair services segment of approximately 86.4%, 27.2% and 38.4% respectively. The new smart vending machines business generated a revenue of around HK$150,000 (US$19,000).
The company also recorded a decrease in gross margin from around 31.0% in 2020 to 11.1% in 2021 and warned of a further write-down of inventories to net realizable value of approximately HK$3.3 million (US$422,000) – mainly arising from the termination of leased assets to casino operators in Philippines and Cambodia in May 2020.
The reason for the decline, APE explained, is primarily the COVID-19 pandemic which it said “has been ongoing for more than three years now [sic] [and] continues to affect adversely the operations of our customers, the land-based casinos.”
APE is expected to release its full results for 2021 later this week.
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