Macau-based gaming product distributor Asia Pioneer Entertainment (APE) reported a total comprehensive loss of HK$3.8 million (US$485,000) in 1Q23, narrowed from a HK$4.3 million (US$549,000) loss a year earlier on the back of rising revenues.
However, while the company’s consolidated revenues for the period grew by 33.6% year-on-year to HK$1.8 million (US$230,000), its core segment – Technical Sales and Distribution of EGEs – saw revenue fall by 50.1% to HK$218,800 (US$27,900). Instead, Q1 growth came from the ongoing growth of APE’s recently launched Smart Vending Machine business, which saw revenues jump by 321% to HK$614,300 (US$78,400). Repair services also enjoyed a 173% improvement to HK$360,300 (US$46,000).
Commenting on its future prospects, management said, “Despite the uncertainty on COVID-19 which affected the operations and plans of our customers for the past three years, the Group is confident that our core EGE Business and Smart VM Business will recover post-COVID as tourist, mass gamers, consumers and business return to Macau and Asian region. The Group is committed to driving the Company back to profitability this year.
“Other than its EGE Business and Smart VM Business, the Group continues to proactively seek opportunities to diversify its businesses. As Macau transitions from a pure gambling hub, more emphasis will be placed on non-gaming businesses, including technologies and other non-gaming services. The Group will seek diversification opportunities that suit the Group’s competitive advantages.”
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