Lower impairment costs help APE Macau cut losses in H1

As it previously warned last month, APE saw revenue drop 74.6% to just HK$3.0m (£277,939/€327,084/$385,373).

Sales of electronic table games made up $1.4m of this total, down 73.1%, while sales of spare parts for these games brought in an additional $524,597, a 76.1% decrease. In addition, the business recorded no sales of electronic gaming machines, after these brought in $2.0m in 2020.

This meant total sales revenue was $1.9m.

Technical support services brought in an additional $408,618, down 50.1%, while consultancy services contributed $490,071, a 20.6% decline. Repair services revenue, meanwhile, was $191,512, an 80.0% drop.

Looking at revenue geographically, the vast majority – at $2.9m – came from Macau, representing a decline of 55.4%. Vietnam brought in $56,622, a decline of more than 98%, while the rest of the world contributed $71,862, down 41.4%.

APE Macau’s costs of sales came to $2.8m, down 75.2% from 2020. This led to a gross profit of $194,120, a 94.2% drop.

Despite the sharp decline in revenue, APE Macau’s operating costs only decreased by 9.1%, to $9.5m. 

After this, plus finance costs, impairment costs and other losses, APE was left with a final loss of $9.4m. However, this was an improvement from 2020, when APE recorded a $29.0m loss – thanks mostly to a $22.9m impairment charge.

Looking just at the second quarter of 2021, APE posted revenue of $990,314. This was less than its costs of sales, at $1.2m, resulting in a gross loss of $221,300.

After operating and other expenses combined to come to $4.8m, APE reported a final loss of $5.1m.

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