Rego Interactive (2422) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 25.5% YoY to RMB191.1m; profit attributable to owners fell 81.7% to RMB12.6m amid weaker advertising demand, tighter customer selection and higher expenses.

• Virtual and tangible goods sourcing expanded, while lottery software revenue held steady; strategic focus is on lottery marketing, digital solutions and cross-segment growth.

Financial highlights

• Revenue was RMB191.1m, down 25.5% YoY; gross profit was RMB101.7m, down 23.8%.

• Profit before tax was RMB14.9m, down 81.6%; profit attributable to owners was RMB12.6m, down 81.7%.

• Adjusted net profit was RMB21.7m, down 73.3%; adjustment items included RMB11.0m listing expenses, RMB10.1m fair-value losses and an RMB0.9m FX gain.

• Basic and diluted EPS was RMB0.01, versus restated RMB0.07 in FY2022.

Outlook and guidance

• FY2024 priorities include scaling lottery marketing tickets through an agreement with China Sports Lottery Administration Centre and expanding reach among Welfare Lottery and Sports Lottery customers.

• Plans include developing lottery software and hardware, expanding virtual and tangible goods offerings, and pursuing e-commerce solutions and strategic investments.

• A SaaS enterprise marketing platform is planned initially for lottery retail stores, focused on buyer management, operational efficiency and cross-selling marketing and IT services.