Asia Pioneer Entertainment sees strong H1 2024 with over 150% revenue boost??

Jenny Ortiz August 27, 2024

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Asia Pioneer Entertainment sees strong H1 2024 with over 150% revenue boost??

Asia Pioneer Entertainment Holdings Limited (APE) reported a surge in revenue for the first half of 2024. The company’s revenue rose by 159.6 percent year-on-year, reaching HKD19.9 million (€2.3 million) compared to HKD7.7 million (€883,979) in the same period the previous year.

Narrowing losses despite higher operating expenses??

While APE’s operating expenses increased by 43.3 percent year-on-year, from HKD7.2 million (€826,578) to HKD10.3 million (€1.2 million), largely due to higher operating and staff costs, the company managed to reduce its net losses. The loss and total comprehensive expense for the first half of 2024 decreased to approximately HKD600,000 (€68,881), a sharp decline from the HKD7.1 million (€815,097) loss reported in the same period in 2023. This improvement is primarily attributed to the increased revenue from APE’s core business segments.

The main driver of APE’s revenue was the “Technical Sales and Distribution of Electronic Gaming Equipment (EGE),” which contributed HKD13.8 million (€1.6 million). Revenue from “Consultancy and Technical Services” also showed growth, increasing by 301 percent to HKD4.5 million (€516,611). However, the company noted a slight decline in revenues from “Repair Services” and “Product Sales through Smart VM,” which decreased by 26.8 percent and 13.2 percent, respectively, though these reductions did not impact the overall revenue growth.

Optimistic outlook for H2 2024??

APE remains confident about achieving full-year profitability in 2024. The company noted that macroeconomic trends in the Macau casino industry are positive and expected to drive demand for APE’s products. Furthermore, APE is actively promoting its EGE solutions in other Asian markets, including the Philippines and Malaysia, which could further boost sales in the latter half of the year.

The company also highlighted upcoming product launches that could enhance its market presence. New electronic roulette machines from Slovenia’s Spintec and updated progressive jackpot slots from Taiwan’s Jumbo Technologies are expected to be introduced in the Macau market after obtaining regulatory approval. Additionally, APE is focusing on promoting Konami’s popular slot machines, which have already gained traction in casinos across Asia.

Expansion plans??

Beyond focusing on EGE sales, APE is looking to diversify its product offerings to include supplementary products used in casinos for gaming and marketing operations. This strategic move aims to capitalise on the recovering post-pandemic casino market and secure long-term growth.