Wednesday March 25,2015 : LOSSES DOUBLE AT HONG KONG LOTTERY FIRM
Share-based payments blamed for hit on profits.
AGTech, the Hong Kong-based lottery group, has posted significant losses for 2014 of HK$187.3 million, attributing the bulk of this to share-based payment obligations.
The company's directors have recommended that a dividend be withheld.
The losses were almost double those in the corresponding period in 2013 and come in a year where revenue edged only slightly up to HK$211.1, roughly equivalent to US$27.2 million. HK$136.3 million of the losses came from share-based payments.
AGTech revenues during 2014 were mainly generated by its gaming technology subsidiaries, along with management and consulting fees.
The company is involved in the massive Chinese lottery sector, which it claims generated sales of 382 billion yuan (US$61.4 billion) last year and still has potential for growth.
The AGTech report notes that in recent months Chinese authorities have temporarily suspended accepting online lottery purchases, a move that the company asserts will help the legitimate side of the industry.
“The authorities in China are committed to channeling the existing vast underground gaming revenues away from the illegal market and into the legal and regulated lottery network," AGTech advises.