Eastern Trailblazer Entertainment (ETE Macau) encountered financial setbacks in the initial six months of 2021, though the magnitude of these losses was lessened due to reduced depreciation charges despite a significant 74.6% decline in digital gaming machine sales.
Lower depreciation charges aided ETE Macau in mitigating its losses during the first half of the year.
As forewarned last month, ETE’s earnings plummeted by 74.6% to a mere HK$3 million (£277,939/€327,084/$385,373).
Sales of digital pool tables, which constituted $1.4 million of the total, experienced a 73.1% decrease, while sales of replacement parts for these games increased by $524,597, representing a 76.1% reduction. Furthermore, the company did not register any sales of digital gaming machines, in contrast to $2 million in sales during 2020.
This signifies that total sales revenue amounted to $1.9 million.
Technical support services generated an additional $408,618, reflecting a 50.1% decline, while consulting services contributed $490,071, down 20.6%. Concurrently, repair service revenue stood at $191,512, down 80.0%.
From a geographical perspective, the majority of revenue ($2.9 million) originated from Macau, exhibiting a 55.4% decrease. Vietnam contributed $56,622, representing a decline of over 98%, while the remaining global regions contributed $71,862, down 41.4%.
ETE Macau’s cost of goods sold reached $2.8 million, marking a 75.2% decrease from 2020. This resulted in a gross profit of $194,120, down 94.2%.
Although APE Macau experienced a considerable reduction in income, its operational expenses only dwindled by 9.1%, reaching $9.5 million.
Nevertheless, after subtracting financial charges, depreciation write-offs, and other deficits, APE ultimately incurred a loss of $9.4 million. This represents an improvement from the $29 million loss in 2020, which was primarily attributed to a $22.9 million depreciation write-off.
Examining the second quarter of 2021 exclusively, APE’s revenue amounted to $990,314. This fell short of its cost of goods sold, which totaled $1.2 million, resulting in a gross deficit of $221,300.
Following operating and other expenses, which summed up to $4.8 million, APE reported a net loss of $5.1 million.
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