Home > Finance > Full year results > Revenue up at AGTech in 2022 despite lottery decline

Revenue up at AGTech in 2022 despite lottery decline

| By Robert Fletcher
AGTech Holdings reported a year-on-year increase in revenue during its 2022 financial year, despite a decline within its lottery and related business segment.

Lottery was previously AGTech’s core focus area, but the group in March 2022 completed the acquisition of payment services provider Macau Pass Holding, significantly expanding its service offering.

While the addition of Macau Pass to its operations helped drive a 38.8% increase in overall revenue to HK$351.4m (£36.4m/€41.2m/US$44.8m), AGTech also experienced a fall in lottery and related revenue, which fell 32.5% to $171.2m.

This, AGTech said, was down to a number of factors including a drop in lottery hardware sales, a decline in non-lottery hardware sales and lower revenue from the group’s games and entertainment and marketing technical services business.

In contrast, revenue from the newly acquired and now wholly owned subsidiary Macau Pass electronic payment business amounted to $176.7m, offsetting the decline in lottery revenue for the year.

Further afield

Looking at geographical performance, $171.2m of all revenue came from operations in mainland China, while $180.2m was attributed to activities in Macau.

Turning to costs, other operating expenses were 132.6% higher year-on-year at $212.1m, mainly due to the inclusion of other operating expenses of the Macau Pass, while employee benefit spend also increased 9.4% to $127.8m.

Net other losses stood at $25.4m and depreciation and amortisation expenses amounted to $66.6m, both up year-on-year, although costs for the purchase of and changes in inventories fell to $62.7m.

In terms of financial costs, while certain expenses were noted, net finance income was $44.4m, offsetting these expenses and leaving AGTech with a pre-tax loss of $129.4m, compared to a $67.2m loss in the previous year.

The group paid $1.7m in tax, meaning it ended the year with a net loss of $131.1m, more than double the $63.1m loss recorded in 2021. AGTech also noted a negative impact of $58.7m in foreign currency translation, meaning its comprehensive net loss amounted to $189.7m, compared to $48.2m in the 2021 financial year.

However, adjusted EBITDA loss for the year improved from $15.0m to $9.9m.

As a result of the net loss, AGTech said its board did not recommend paying a final dividend for the year.

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