Chinese lottery, games and entertainment technology company AGTech Holdings Limited has released its financial results for the Fiscal Year 2021, reporting a revenue increase of over 56.7% from the previous year.
Total group revenue reached HK$253m for the twelve months ended December 31, attributed to lottery hardware sales, the provision of lottery distribution and ancillary services and non-lottery hardware sales in China, plus its games and entertainment business in India.
It signals a 56.7% increase in revenues, caused by HK$94.8m in lottery hardware sales, an increase of approximately HK$18.4m in revenue from lottery distribution and ancillary services, with increases in sales of non-lottery hardware of HK$20.6m.
Revenues from its Indian games and entertainment business of approximately HK$4.1m was offset by the decrease in revenue of approximately HK$46.2m from its lottery games and systems business.
During 2021, AGTech won 27 tenders to supply lottery hardware across China’s different regions, cementing the firm’s ‘top-tier’ position in the market.
The firm sought to expand its revenue stream throughout the year, moving into non-lottery hardware such as point of sale systems, sales of which increased 87% year-on-year.
The vast majority of revenues from its gaming and entertainment business came via mobile gaming through a 45% joint venture with Paytm First Games. Featuring a daily fantasy sports game, AGtech made HK$18.1m in revenue from the venture.
However, the closure of two virtual sports lottery games supplied, ‘e-Ball Lottery’ and ‘Lucky Racing’, led to revenue decreases in the lottery games and systems division.
Though AGTech made a loss of HK63.1m in 2021, it represents a reduction in losses of 42.4% year-on-year, with the increase in lottery hardware supply contracts offsetting other losses.
AGTech published a statement reading: “Increases in revenue from lottery hardware and provision of lottery distribution and ancillary services were mainly due to the continuous rebound of the Group’s lottery business from the impact of the COVID-19 pandemic.
“In particular, the increase in revenue from the provision of lottery distribution services was due to the increase in average lottery sales volume per sales outlet and the continuous efforts of the Group in expanding its network of collaborating retail sales outlets for lottery distribution.”
The statement concluded: “In addition, the Group has commenced supplying non-lottery hardware (including POS terminals) during the year, further broadening its source of revenue.”
