Key Financial Highlights For the three months ended September 30, 2017: - Revenue was HK$120.1 million, an increase of 64% over revenue of HK$73.1 million generated in the third quarter of 2016.
Importantly, the increase in revenue was primarily driven by our new Games and Entertainment division, launched in the first half of 2017. - This division generated revenue of HK$42.8 million, an increase of 180% over last quarter's revenue of HK$15.3 million. - Revenues from this division represented 36% of overall revenues. - Gross profit was HK$62.5 million, increasing 260% over last year's HK$17.4 million in the third quarter of last year. - Gross profit margin was 52%, improving from 24% recorded for third quarter last year. - The increased sales with higher margin from the Games and Entertainment division primarily drove the increase in gross profit and gross profit margin. - Selling, general and administrative expenses was HK$96.7 million, compared to HK$101.2 million for the corresponding period in 2016. - Selling, general and administrative expenses included HK$28.8 million in share-based compensation, as compared to HK$13.8 million recorded during the corresponding period in 2016.
More to come after a conversation with management.
Disclosure: I am/we are long AGTEF.