AGTech reports 16% revenue drop for first nine months of 2016

Kong-listed lottery provider AGTech has published its results for the nine months to 30 September 2016, reporting a 16% drop in revenue year-on-year to HK$149.8m

The company cited reduced sales of lottery hardware products in accounting for this decline, noting that “revenue in this business typically exhibits an irregular pattern since not only are sales not on a commission basis but also the customer base is concentrated and the timing of customer orders can be variable.

“Thus, while over longer periods of time, orders and revenues tend to be stable; in the short term, volatility can be seen.”

Most of the revenue across the period was derived from lottery games and systems, hardware, distribution and ancillary services in China.

The cost of sales and services across this period was HK$109.6m.

AGTech also recorded a loss after tax for the nine-month period of HK$53.9m, although this loss was narrowed by 51.1% compared to the same period in 2015, falling from HK$110.2m.

Loss per share was reported at HK$0.901 cents.

For the three month period ended 30 September 2016, the provider recorded a 5% decrease in revenue to HK$73.1m, alongside an overall loss of HK$20.1m.