Stargroup Ltd's (ASX:STL) investment in a private South Korean company is providing a positive valuation addition to its portfolio.
Stargroup owns 11.28% of NeoICP Korea Inc.
NeoICP has delivered full year results with further strong gross revenues of A$23,785,081, an EBITDA of A$2,151,031 and a net profit after tax of A$1,529,054.
The net assets of NeoICP were $16,732,547 as at the 30th June 2017.
Todd Zani, chief executive officer and executive chairman for Stargroup, commented:
"Stargroup is pleased with the excellent 2017 results posted by NeoICP and they have significantly increased their market share of ATMs and back office technologies in South Korea in 2017 on the back of what was also an outstanding result in 2016.
"The NeoICP revenues have increased by more than 20% since 2015.
"We are the only ATM deployer in Australia that has a direct ownership interest in its manufacturer and we believe that this is an excellent investment and have upwardly revalued this investment in our 2017 results.
"The reciprocal shareholdings between Stargroup and NeoICP sets us apart in the ATM market place and as advised last week we are looking to distribute further technologies manufactured by NeoICP in Australia and also internationally on the back of the launch of these technologies at last week’s Australasian Gaming Expo in Sydney.
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"We are already in negotiations with a number of gaming manufacturers and distributors in relation to these technologies and the possible distribution of these technologies internationally and the Board will continue to keep the market informed of developments."