Chinas Ourgame expecting narrowed loss in 1H21

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Chinese online games operator Ourgame International Holdings has issued a profit warning on an expected net loss of RMB31 million (US$4.8 million) for the six months to 30 June 2021.

The loss represents a decrease of around 80% from a loss of RMB160 million reported during the same period last year, which was attributed at the time to lower in-person revenues related to its eSports and poker businesses due to COVID-19.

Ourgame is a joint venture partner in Allied Esports Entertainment Inc (AESE), an entity that owns US eSports operator Allied Esports International Inc and, until recently, the World Poker Tour (WPT). The company sold its WPT assets in July for US$105 million.

According to a Hong Kong Stock Exchange announcement, the improvement in Ourgames H1 results was mainly attributable to an increase in operations and reduction in costs, expenses and other losses.

It also said the companys business in China, which includes the development of online free-to-play games, saw steady development.

In addition, with the Company strengthening the managerial control on AESE the administrative expenses, loss in fair value of financial assets at fair value through profit or loss, loss of conversion of convertible notes and other expenses of AESE were reduced significantly.