AGTech losses for 2014 more than double

Monday 23rd of March 2015

Lottery company AGTech reported total revenue of HK$211.1 million ($27.2 million) for 2014, up slightly on the year before, while losses for the year more than doubled.

Revenue rose 1.4 percent from HK$208.3 million in 2013 as losses grew to HK$187.3 million in 2014 from HK$ 83.9 million the year before.

“Loss attributable to owners of the Company for the year under review amounted to approximately HK$189.2 million, primarily due to the share-based payments (totalling approximately HK$136.3 million)...”

The company said most of the revenue was derived from its gaming technologies business and provision of sports lottery management and marketing consultancy services in China.

The company said China’s lottery market - which has two legal operators, the national welfare lottery and the national sports lottery - recorded impressive sales of RMB382 billion ($61.4 billion).

“Despite the impressive growth of the Welfare Lottery and Sports Lottery in recent years, compared with other countries, China’s lottery participation rates are at an extremely low

level.”

AGTech’s board said it does not recommend the payment of a final dividend for the year.

In recent months China’s provincial sports lottery administration centers temporarily suspended accepting online purchases, a move that the company says 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. This process is already well underway and is a vital step to ensure that the vulnerable in Chinese society are adequately protected, that the potential for corruption is minimised and, importantly, to increase the funding available for good causes.”