Asia Pioneer Entertainment Holdings has reported a 46 percent fall in its H1 revenues, hit by the impact of Covid-19 in both direct and indirect ways. The revenue total for the quarter was HK$11.8 million (US$1.5 million), producing net losses of HK$29 million.
A company statement explained, “The group’s business and results of operation are highly dependent on the demand of casinos, particularly at the time of new casino openings and replacement of used electronic gaming equipment. This demand has been negatively impacted by the Covid-19 crisis which has affected the operations of the group’s major customers, land-based casinos. A significant portion of the group’s revenue was generated by technical sales and distribution of electronic gaming equipment.”
In light of its over-dependence on electronic gaming equipment, APE is aiming to diversify into other fields; namely, consulting and project management in Vietnam and sponsorship and promotion of sports entertainment events.
Macau's gross gambling revenue in the week to May 23 was up 12 percent from the prior week, but was still 6 percent lower than April, with the lower end tourism market comprising the majority of arrivals, according to Bernstein Research.
Interblock says it’s still seeing challenging times across Asia, with the ongoing travel restrictions forcing jurisdictions to extract as much value as possible from local markets. The company welcomes the Philippines’ lead in allowing local IRs to begin accepting online bets and says this may be a new area of opportunity.
For this edition of our magazine, we focus on Southeast Asia, with a particular look at the Philippines. The country’s casino industry has been among the hardest hit in Asia, with the integrated resorts in Manila’s Entertainment City having remained mostly closed to the general public since the beginning of the crisis last year.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.