Macau-based gaming equipment supplier Asia Pioneer Entertainment (APE) has reported a HK$13.3 million (US$1.69 million) loss for the nine months to 30 September 2022, slightly widened from the HK$13.0 million (US$1.66 million) loss recorded a year earlier.
The result follows a 27.6% decline in group-wide revenue for the period to HK$4.0 million (US$510,000), primarily due to a 74% decline in revenue from its technical sales and distribution of electronic gaming equipment segment to HK$998,305 (US$127,180).
The repair services segment suffered an 8.8% revenue decline to HK$317,458 (US$40,440) although consultancy and technical services grew by 49.5% to HK$2.0 million (US$255,000). The Smart Vending Machine business, a brand-new segment for APE, generated revenue of HK$678,462 (US$86,440).
APE said it continues to look for new revenue streams given the ongoing impact of the pandemic in its traditional Macau home.
“During the Period, the Group set up a new 100% owned subsidiary called APE Digital Creations Limited in Hong Kong to participate and engage in metaverse and related businesses,” it said. “The Group hopes that APE DCL will allow the Group to diversify into online and digital business opportunities.
“The Group remains concerned about the impact of the ongoing outbreak of the COVID-19 on the operations of its land-based operators in Macau SAR and Southeast Asia. This has caused a prolong impact on our businesses and operations, particularly our EGE business.
“As a result, the Group needs to diversify its business lines, and are looking for EGE Sales in Asia and improves operation in Smart VM Business to secure income. We are also doing internal restructuring to minimize costs and expenses of our operations.
“The Group still hopes that its business activities can quickly return to pre-COVID-19 levels.”
APE said it has not declared a dividend for the period.
