16th Jun 2015 06:56
LONDON (Alliance News) - DJI Holdings PLC Tuesday reported a narrowed pretax loss in 2014 as its revenue grew, but warned that the suspension of online lottery sales in China is preventing the business from turning to profitability.
The Chinese lottery products company reported a pretax loss of GBP3.0 million, reducing by more than half of the GBP7.2 million loss it made in 2013, as revenue grew to GBP13.4 million from GBP1.1 million.
DJI said that revenue was boosted by the rapid adoption of its online ticket fulfilment platform, supported by multiple provincial licences and contractual agreements.
However, it warned that delays related to the suspension of online lottery sales by the Chinese government are hitting its profit, as its online lottery sales operations make up 96% of its total revenue. DJI said it is not clear how long the suspension will last.
"This was a year of significant progress for DJI Holdings PLC. The acquisitions and joint venture agreements completed prior to our IPO and listing in July have positioned our business to capitalise on the fast-growing online sector of the Chinese lottery industry. The March 2015 temporary suspension of online sales continues pending regulatory changes, but when these sales resume, we expect Chinese consumers increasingly to choose web and mobile as their channel of choice for lottery ticket purchases," Chief Executive Darren Mercer said in a statement.
"We will continue to work closely with our corporate and government partners to understand the opportunities available to us in the industry and, where practical, to work with the best partners and providers to maximise our speed to market and available returns for our shareholders," Mercer added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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