Macau-based slot machine services firm Asia Pioneer Entertainment (APE) saw revenues surge by 63.7% to HK$86.1 million in 2017, boosted by new casino openings and the addition of a new business segment.
The growth in revenue helped gross profit increase 49.9% to HK$34.8 million, however expenses related to the company’s successful listing on the Hong Kong Stock Exchange in November, amounting to HK$14.2 million, saw profit after tax decline 53% to HK$4.5 million.
In an announcement on Tuesday, APE said that new casino openings in Macau in 2017 – which included Legend Palace, Jai Alai, the Macau Jockey Club Casino at The Macau Roosevelt and Golden Dragon Group’s Royal Dragon Casino – had “created strong demand for our products and led to an increase in the technical sales and distribution segment of 74.0% year-on-year.”
APE also revealed that it had sold 319 refurbished slot machines during the year, a new business segment for the group.
“Looking ahead, management believes that the group’s prospects will continue to ride on the rebound of Macau’s GGR as well as the growth of mass market gaming,” the company said. “In 2018, there will be two new major casinos, namely MGM Cotai as well as Grand Lisboa Palace Cotai, opening and creating a favorable backdrop for the group’s sale and distribution business in Macau.
“For the year ahead, the group will continue to implement its business plan and use of proceeds as outlined in our listing prospectus. It has already concluded the sale of our first batch of refurbished slots, a batch of 319 used slots which we purchased, refurbished in Macau and resold.
“Management is also actively pursuing leasing agreements with Macau operators and is continuing to pursue distribution opportunities in Asia outside of Macau.
“In our consulting services business, APE has signed with a major supplier of ticket printers to be their official repair center for the Asia Pacific region.”
APE added that it will relocate to a new 18,000 square foot office with a workshop and warehouse in 2Q18.
“We believe that the expanded facility will allow us to capture greater market share and enhance our reputation as a total solutions provider of EGEs in Macau,” the company said.
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