Chinese lottery, games and entertainment technology company AGTech Holdings Limited has released its financial results for the first quarter of 2021, reporting a revenue increase of over 50% year-on-year.
Group revenue for the three-month period ending March 31, 2021, amounted to approximately HK$20.7m, representing a rise of approximately 51.3% over Q1 2020. Revenue contributions were mainly derived from lottery hardware, lottery games and systems, provision of distribution and ancillary services in the PRC, and games and entertainment business in India.
The company noted that the boost in revenue was spurred by the improvement in sales of lottery hardware of approximately HK$4.2m, a growth of approximately HK$5.8m in revenue from the provision of lottery distribution and ancillary services.
Also contributing was an uptick in revenue from games and entertainment business of approximately HK$3.0m, partially offset by the decrease of approximately HK$5.9m from the lottery games and systems.
Revenue from lottery hardware and provision of lottery distribution and ancillary services were mainly due to the gradual rebound of the group’s lottery business from the impact of the pandemic (which primarily hit the PRC lottery sales during the first quarter of 2020) since the second half of 2020 through the three-month period. In particular, the revenue gain from the provision of lottery distribution services was due to the overall lottery sales volume rise.
The firm also reported that the revenue rise from games and entertainment business was caused by an increase in content provision sales from the Paytm First Games platform in India.
The decrease in revenue from lottery games and system was due to the cessation of the sales of two virtual sports lottery games supplied by the group, namely ‘e-Ball Lottery’ and ‘Lucky Racing’, from November 1, 2020, and February 9, 2021, respectively.
Operating loss for the three-month period was approximately HK$43.9m, representing a drop of approximately 39.1% over Q1 2020.