Asia Pioneer Entertainment (APE) has made significant strides in reducing its losses in the first half of 2024, while achieving a remarkable 160 percent year-on-year revenue increase. The company aims to return to full-year profitability by the end of 2024.
In the first six months of the year, APE reported a net loss of just HK$638,929 ($81,940), a significant improvement compared to the HK$7.1 million ($914,550) loss recorded in the same period in 2023. This turnaround is attributed to a surge in revenue, which reached nearly HK$19.92 million ($2.55 million).
The bulk of the revenue came from the group’s Technical Sales and Distribution of Electronic Gaming Equipment (EGE), which generated HK$13.81 million ($1.77 million), marking a near 190 percent yearly increase. The gross profit margin for this segment improved drastically to 46.6 percent, up from just 5.3 percent in the first half of 2023, largely due to increased sales and effective cost management. APE credits principal manufacturers Spintec, Jumbo Technology, and Konami for contributing to this growth, with new products from these manufacturers expected to hit the Macau market in the second half of 2024 and into 2025.
Additionally, APE highlighted its exclusive distribution agreement with IDX Systems, a manufacturer of electronic trend boards commonly used at baccarat tables. APE is focused on pitching IDX products to Macau casinos in 2024 and 2025.
APE’s Consultancy and Technical Services segment also showed impressive growth, with a 301 percent increase in revenue, totaling HK$4.59 million ($588,560) in the first half of 2024. The gross profit margin for this segment soared to nearly 62 percent, a sharp contrast to the 7.3 percent loss in the same period of 2023, thanks to upgrades in support services.
Looking ahead, APE remains optimistic about achieving full-year profitability as the macroeconomic outlook for the Macau casino industry remains strong. The company is actively marketing its EGEs to casinos in the Philippines and Malaysia, expecting increased orders in the second half of 2024. APE also plans to diversify its product portfolio by introducing supplemental products used in gaming and marketing operations at casinos.
Despite the positive developments, the company decided not to issue an interim dividend for the first half of 2024.
