APE Macau to “restructure” gaming machine business to cut costs
The announcement comes in the context of continuing Covid-19 disruptions to the Macau gaming trade which has damaged the EGE section of the business.
During the Covid period, revenues from these services have fallen 68.1%. On the other hand, the company’s consulting and technical services and repair services divisions have both reported rises of 50.7% and 31.1% respectively.
Revenue for the six months ending June 30 stands at HK$2.7m (£285,073/ $344,379/ €337,818), compared to HK$21.9m in 2019, the last year unaffected by Covid, an 88% decline. In the same six-month period of 2021, the business received HK$3m in revenue, meaning the 2022 figure represented a 10% decrease year-on-year.
The business made a HK$9.8m loss in the 6-month period, compared to the HK$9.4m loss the business made for the first half of 2021 and the HK$8.2m profit APE Macau made in H1 2019.
Following these results, the business said that it would continue to try to diversify, as previously announced, but would also begin a process of restructuring. It did not outline what this restructuring would entail.
“The ongoing uncertainty of Covid-19 continues to affect the operations and plans of our customers. This has caused a prolonged impact on our businesses and operations, particularly our EGE business,” it said.
“As a result, the group needs to diversify its business lines, and also look at ways to minimize costs and expenses. The group is actively looking at steps to restructure our EGE business to prepare for the future,” it continued.