APE Macau releases profit warning for 2021 as revenue plummets

| By Marese O'Hagan
Asia Pioneer Entertainment Holdings Limited (APE Macau) has released a profit warning, revealing that it expects an 81.1% drop in revenue to HK$7.6m (£732,720/€882,546/USD$971,010) for 2021.

This drop comes after the business recorded HK$40.5m in revenue in 2020. That year, the business also issued a profit warning for its full-year results and ultimately recorded a HK$32.0m loss. In 2019, the business recorded revenue of HK$82.0m.

The company attributed this to the Covid-19 pandemic, which has affected land-based gaming operations in Macau.

Electronic gaming equipment (EGE) revenue generated HK$7.5m.

EGE technical sales and distribution revenue fell by 86.4% from 2020. The EGE consultancy and technical services segment saw a decrease of 27.2% while the repair services segment fell by 38.4%.

Meanwhile APE Macau’s smart vending machines segment generated HK$150,000 in revenue.

APE Macau also projected a decrease in gross margin from 31% in 2020 to 11.1% in 2021, along with a further inventory write-down to $3.3m for the year. The latter stemmed from the termination of leased assets to operators in the Philippines and Cambodia in May 2020.

The complete full year results are set to be released on 25 March.

APE Macau reported a 85.8% revenue decline in November 2021 for the first nine months of the year.

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