Asia Pioneer Entertainment, an electronic gaming equipment company, said it plans to begin a sports and sports-related entertainment business in Macau to diversify its income stream.
The Hong Kong-listed company said the new business would include sponsorship and promotion of sports events and operating sports entertainment venues. APE Sports and Entertainment Limited, will be a wholly-owned subsidiary of the company.
“The group has been actively exploring new business opportunities in order to diversify its income stream and bring a higher return to its shareholders,” it said in a note to the Hong Kong Stock Exchange. “Taking into account the increasing awareness of health and increasing demands for sports events in Macau, the directors are of the view that the commencement of the new business will be a good opportunity for the group to diversify its income stream and may enhance the financial performance of the group.”
APE reported a widened loss of HK$1.9 million (US$242,000) for the quarter ended March 31, 2019, due mainly to a fall in revenue.
Total revenue fell approximately 42.8 percent from HK$13.9 million to HK$8 million. APE said the decrease in revenue was primarily attributed to a decrease in income derived from technical sales and distribution of electronic gaming equipment, which almost halved in the quarter to HK$6.5 million.