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AfricaMoney | August 18, 2017

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Mauritius’ gaming major ASL sees profits dip 64.6% as taxes & license fees go up

Mauritius’ gaming major ASL sees profits dip 64.6% as taxes & license fees go up

Automatic Systems Ltd’s financial statement shows that despite the increase in turnover from Rs 1,193.1 million in 2013 to Rs 1,245.9 million in 2014, profit has fallen substantially from Rs 41.0 million to Rs 14.5 million over the same period, explained by considerable increase in government taxes and license fees, which have gone up from Rs 133.1 million to Rs 166.5 million. (Image: cdn.ek.aero)

Mauritian gaming major Automatic Systems Ltd has suffered considerable erosion in profit after tax, which fell 64.6% to Rs 14.5 million at a group level, even as its turnover rose 4.4% from Rs 1,193.1 million in 2013 to Rs 1,245.9 million for the year ended 31 December 2014.

The organization, which covers betting for local horse races and fixed odd foreign football matches, is listed on the Stock Exchange of Mauritius (SEM) and released its financial report for 2014 today in a communique on the SEM.

Automatic Systems Ltd’s financial statement shows that despite the increase in turnover from Rs 1,193.1 million in 2013 to Rs 1,245.9 million in 2014, based on improvement in fixed odd betting on foreign football matches, profit has fallen substantially from Rs 41.0 million to Rs 14.5 million over the same period, explained by considerable increase in government taxes and license fees, which have gone up from Rs 133.1 million to Rs 166.5 million.

Moreover, Automatic Systems also demonstrated its commitment towards corporate social responsibility which goes in line with its policy of supporting education, health, alleviation of poverty and focusing on the less privileged sections of the society as the company it’s support towards NGOs contributing a total of Rs 1,072.069 to various NGO’s.

Furthermore, the betting company warned the public that due to the decrease in the number of race meetings from 43 to 35 and the measures taken by the Minister of Finance during his budget speech of 23 March 2015 — encompassing an increase in annual license fees and betting taxes for all betting operators — the company’s results for 2015 are likely to suffer a negative impact.

Moreover, ASL has also requested the public to exercise caution while dealing with their shares as the budget announcement is likely to cause a dip in company performance.

It may be noted that, as a possible fallout of the stringent budget measures for the gaming industry, ASL shares featured in the bottom 5 shares on the SEM as per today’s close, suffering a -9.43% fall in share value to Rs 48 per share.

Meanwhile, fellow gaming major Lottotech, which runs the National Lottery, also suffered a tumble in share prices, finding its place alongside ASL in the bottom 5 shares on the SEM, with a closing value of Rs 7, following a 5.66% dip in share prices.

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