Macau electronic gaming machine service provider Success Dragon has stated its intention to explore opportunities in blockchain following a 25.7% decrease in revenue in the 12 months to 31 March 2018.
In its FY18 results announcement on Wednesday, Success Dragon revealed revenue of just HK$112.4 million for the year, down from HK$151.2 million in 2017, including an 18.2% decline in its “Outsourced Business Process Management” segment for electronic gaming machines to HK$107 million. The segment comprised more than 95% of all revenue.
In response to the decline, the company said it was now looking at blockchain as a potential opportunity to expand its interests and open new revenue channels.
“In particular, the group will leverage on its experience and know-how in the existing businesses to capture market opportunities in technology-related sectors,” Success Dragon said. “In the normal course of our Outsourced Business Process Management, we have encountered the possibilities of applying blockchain technologies to complement or expand our business operations, in view to improve not only their operational efficiency but also increasing the scope of business.
“This led us to engaging resource in identifying and evaluating emerging ‘fintech’ opportunities across the industries we have serviced. In particular, we found that blockchain outside of cryptocurrency application has potential in addressing the requests we have received.
“To better position ourselves to capture these potential opportunities, in the near future, the company wishes to form strategic partnership with and invest tactically into leading ‘fintech’ companies and to realign our resources in rebuilding our information technology services business. Given the high scalability of the technology involved, venturing into ‘fintech’ will likely strengthen our local presence while expanding our regional and global footprint in order to deliver strong and sustainable returns to the shareholders of the company.”
Despite falling revenues, Success Dragon managed to narrow its losses in FY18 from HK$156.2 million last year to HK$131.6 million this time around, due primarily to a decrease in operating and administrative expenses.
Nevertheless, its “Outsourced Business Process Management” saw its loss grow from HK$7 million last year to HK$11.6 million, due mainly to “the heavy operating cost and worse performance of one of the operation outlets located at the Landmark Macau. As a result, the management of the group decided to cease such operation at the Landmark Macau during the year.”
Success Dragon was also forced to cease the provision of management services to the racing business in Vietnam in June 2017 due to regulatory changes.