29th Sep 2015 10:55
LONDON (Alliance News) - DJI Holdings PLC on Tuesday reported a wider pretax loss in the first half of 2015 as revenue fell due to the Chinese government's decision to temporarily suspend the sale of lottery products online.
The distributor of Chinese sports and welfare lottery products said that its pretax loss in the six months ended June 30 widened to GBP3.3 million from GBP2.3 million the year before, as revenue fell to GBP2.1 million from GBP3.4 million.
It said that trading was hit by the decision of the Chinese government to temporarily suspend the sale of lottery products online from March 1, and that the increased loss was also due to incremental finance costs associated with the convertible note issued in July, 2014.
"Against the background of a strong performance in 2014, the temporary suspension of online lottery sales has materially and adversely impacted our operating results and our financial position in the first half of 2015. We have, however, taken advantage of this down-time to significantly improve our long-term prospects by exploring new ways to work with provincial lottery partners to develop other revenue streams, both lottery and non-lottery, and strengthening our position in the lottery sector to enable us to fully capitalise on the resumption of online lottery sales once the suspension is lifted," Chief Executive Darren Mercer said in a statement.
"The progress that the group has made in diversifying its activities and repositioning itself promises a very exciting six months ahead," he added.
Shares in DJI were trading down 2.2% at 45.00 pence Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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