Asia Pioneer warns APAC casino closures could hurt its business

Hong Kong-listed Asia Pioneer Entertainment Holdings Ltd said it expects the novel coronavirus pandemic to have a “substantial adverse impact” on the group’s financial performance and the group’s interim results in the six months to June 30.

The group’s interests include Asia Pioneer Entertainment (APE), a Macau-based casino slot machine and electronic table gaming distribution, sales and services business. The division has operations across the Asia-Pacific (APAC) region and is also involved in leasing and consulting work.

The parent company said in a filing on Monday that the two markets with interests – the Philippines and Cambodia – had recently announced a temporary suspension of casino operations as part of efforts to stem the further spread of COVID-19 infections linked to the coronavirus.

The group identified potential issues related to two business transactions related to the APE unit. One was a December 2018 financial lease agreement with Glymex Inc. regarding leases of certain electronic game equipment for “use at Philippine casinos.” The other was a December 2018 financial lease agreement with Siam Star Leisure Inc. and Glymex, regarding leases of electronic game equipment for “use at Cambodian casinos.”

Given the pandemic and the suspension of casino operations in those countries, directors at Asia Pioneer Entertainment Group considered that “letters may have difficulty paying rent totaling approximately HK$2.3 million ($300,000) under the payment schedule set out in each financial lease agreement.”

The announcement added that the group will “monitor the situation closely and keep the company’s shareholders and potential investors informed.”

The parent company said in its 2019 annual report at the end of March that it expects 2020 sales revenue from e-gaming equipment to be negatively impacted in common with the wider industry due to the novel coronavirus emergency. However, the group has committed to continuing to expand its existing consulting services and e-gaming equipment leasing arm next year.

BY: 안전놀이터

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