AGTech revenues up but losses persist

The Chinese sports lottery software and systems developer AGTech Holdings Limited has posted H1-2012 financial results that showcase soaring revenues but a persistent loss on the bottom line.

The Hong Kong based company reveals that revenues over the period reached $12.8 million, an almost 128 percent rise, and gross profit rose to $6.13 million, but that the company still experienced a six month loss of $3.5 million attributable to “share-based payment expenses totaling approximately $593,000 alongside amortisation costs amounting to around $2.47 million.”

The increase in revenues came principally from the group’s GOT subsidiary, which was purchased in December 2011, and came from the provision of sports lottery management and marketing consultancy services and gaming technologies in China.

“The board does not recommend the payment of an interim dividend for the six-month period,” Management noted.

“For the six-month period, the group achieved significant growth in total revenues and gross profit. In the past year, the group achieved certain important milestones by launching China’s first national government-approved rapid-draw virtual fixed-odds sportsbetting lottery platform and its first game, Lucky Racing, and completed the acquisitions of GOT and Silvercreek. The group has successfully created a balanced business with leading positions across the main sports lottery verticals in China and brought together international and domestic industry expertise, technologies, management, skills and infrastructure.

“The integration and optimisation of these businesses is well underway and the group expects that this foundation will enable sustainable and profitable growth in the future as well as generating attractive returns to shareholders.’

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