Chinese sports lottery operator MelcoLot Ltd., a company controlled by local gaming mogul Lawrence Ho Yau Lung, reported a net loss of HK$16.7 million (US$2.1 million) for the first nine months of the year, narrowing from the loss of HK$25.9 million seen during the same period of last year.
According to its latest filing with the Hong Kong Stock Exchange, the sports lottery operator generated revenues amounting to HK$53 million during the nine-month period, a surge of 56 per cent year-on-year compared to HK$34 million recorded one year ago.
The increase in revenue was boosted by the significant growth in the company’s sales of lottery terminals and parts, which surged 83 per cent year-on-year to HK$52.3 million from HK$28.5 million.
Nevertheless, the company’s revenue derived from the provision of services and solutions for the distribution of lottery products plunged 87 per cent year-on-year to some HK$683,000 compared to HK$5.4 million for the same period of 2015.
The company noted that the improvement in the financial results for the nine-month period was due to the decline in employee benefit costs and the increase in interest income. For the period, the operator did not propose any interim dividend.
In the filing, despite the Hong Kong-listed operator pointing out that China’s lottery market ‘continued to show steady growth,’ it indicates that the market will remain challenging ‘due to the evolving regulatory environment’, adding that it would seek to develop its business outside the country.
‘We are closely monitoring the development of this growing market in [China],’ it wrote. ‘At the same time, we are continuing to pursue the opportunities to develop international projects and explore [Chinese] business opportunities which can leverage our corporate expertise in the gaming and entertainment industry’.
