Gaming services firm Success Dragon International Holdings Ltd is slowly finding its footing as it successfully trimmed its net loss for the fiscal first half to HKD29.3 million (US$3.8 million).
Success Dragon said in a regulatory filing, that the net loss the company posted this year was an improvement compared to the HKD140.3 million (US$18.1 million) it recorded a year earlier. For the six months to September 30, the Hong Kong-listed company announced a HKD81.7 million (US$10.53 million) revenue, up by 2.5 percent from the prior-year period.
Its administrative expenses, according to Success Dragon, were 32 percent year-on-year to an estimated HKD51.3 million (US$6.61 million).
“The major reason lies in the decrease in staff costs, particularly on equity-settled share-based payment,” Success said.
The firm, on the other hand, saw a decrease of its other expenses from approximately HKD88.8 million to around HKD4.2 million in the April to September 2016 period. The company had recognized an impairment of assets to a value of HKD87.2 million in the prior-year period.
Meanwhile, Success Dragon also reported thatits outsourced business process management continued to be the group’s core business, contributing approximately 78.4 percent of the total revenue for the six-month period.
The outsourced business process management is divided into electronic gaming equipment management in Macau and the provision of management services for greyhound racing business in Vietnam.
It would be recalled that the company restructured its operations last year to include “outsourced business process management and IT [information technology] services” for the gaming industry.
According to the Success Dragon’s report, revenue from this business segment grew by 12.3 percent to an estimated HKD64 million (US$ 8.25 million).
“The management of electronic gaming equipment operations in Macau has been improving steadily with heavier emphasis on marketing. Cost control remains to be the key objective in Macau operations,” Success Dragon said. “Both measures contributed better result to this operation, comparing with the six months ended 30 September 2015.’